CMS Energy Corporation (NYSE:CMS) Shares Set to Pay Quarterly Dividend of $0.57

Key Points

• CMS Energy declared a quarterly dividend of $0.57 per share, payable December 1 to shareholders of record on November 6. The annualized dividend is $2.28 per share, representing a 3.4% yield.
• The dividend appears financially supported, with a current payout ratio of 59.1% and an expected future payout ratio of 54.8%; the company has raised its dividend for three consecutive years.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $78.56, compared with the stock’s reported price of $67.34, though some firms recently lowered their targets or ratings.

CMS Energy Corporation (NYSE:CMS - Get Free Report) declared a quarterly dividend on Monday, October 19th. Investors of record on Friday, November 6th will be paid a dividend of $0.57 per share by the utilities provider on Tuesday, December 1st. This represents a $2.28 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date of this dividend is Friday, November 6th.

CMS Energy has raised its dividend by an average of 0.1% per year over the last three years and has increased its dividend annually for the last 3 consecutive years. CMS Energy has a payout ratio of 59.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect CMS Energy to earn $4.16 per share next year, which means the company should continue to be able to cover its $2.28 annual dividend with an expected future payout ratio of 54.8%.

CMS Energy Stock Performance

NYSE:CMS opened at $67.34 on Tuesday. The stock has a 50 day simple moving average of $66.97 and a 200 day simple moving average of $71.95. The stock has a market cap of $21.12 billion, a P/E ratio of 20.22, a PEG ratio of 2.51 and a beta of 0.32. CMS Energy has a 1-year low of $62.28 and a 1-year high of $80.36. The company has a current ratio of 0.94, a quick ratio of 0.67 and a debt-to-equity ratio of 1.81.

CMS Energy (NYSE:CMS - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The utilities provider reported $0.37 EPS for the quarter, beating analysts' consensus estimates of $0.36 by $0.01. CMS Energy had a return on equity of 10.76% and a net margin of 11.64%. The firm had revenue of $1.83 billion for the quarter, compared to analyst estimates of $1.87 billion. During the same period in the prior year, the firm posted $0.71 EPS. The company's revenue for the quarter was down .5% on a year-over-year basis. CMS Energy has set its FY 2026 guidance at 4.080-4.170 EPS. Research analysts anticipate that CMS Energy will post 3.87 earnings per share for the current year.

Analyst Upgrades and Downgrades

CMS has been the subject of several analyst reports. Barclays dropped their price objective on shares of CMS Energy from $81.00 to $72.00 and set an "overweight" rating for the company in a research note on Friday. Truist Financial decreased their target price on shares of CMS Energy from $81.00 to $77.00 and set a "buy" rating on the stock in a research report on Wednesday, October 14th. BMO Capital Markets raised their target price on shares of CMS Energy from $73.00 to $76.00 and gave the stock an "outperform" rating in a report on Monday. KeyCorp cut CMS Energy from an "overweight" rating to a "sector weight" rating in a report on Thursday, July 23rd. Finally, Wall Street Zen upgraded shares of CMS Energy from a "strong sell" rating to a "sell" rating in a research report on Sunday, July 5th. Seven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $78.56.

CMS Energy Company Profile

CMS Energy Corporation is an energy company headquartered in Jackson, Michigan. Through its principal subsidiary, Consumers Energy, the company provides electric and natural gas utility services to residential, commercial and industrial customers throughout Michigan.

Consumers Energy operates and maintains electric generation, transmission and distribution infrastructure, as well as natural gas storage and distribution systems. CMS Energy also conducts independent power generation and energy-related activities through its businesses focused on renewable energy, natural gas and other power projects.

Founded in 1987 as a holding company, CMS Energy traces its utility operations to Consumers Power Company, which was established in Michigan in the late 19th century.

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