Our analysis is based on comparing DTE Energy Co. with the following peers – Xcel Energy Inc., CMS Energy Corporation, Eversource Energy, MGE Energy, Inc., WEC Energy Group Inc, Alliant Energy Corp, NiSource Inc and Ameren Corporation (XEL-US, CMS-US, ES-US, MGEE-US, WEC-US, LNT-US, NI-US and AEE-US).
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), DTE-US paid a medium quality dividend, which represents a yield of 2.97% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were medium quality and 3 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to December 31, 2016), DTE-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 3.92x), investing cash flow (coverage of -6.17x), issuance cash flow (coverage of 3.34x) and twelve-month prior cash (coverage of 0.36x), for a total dividend coverage of 1.30x.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||3.93||3.79||3.07||3.48||3||3.06|
|Dividend Payout (%)||68.03||68.44||52.75||69.93||63.15||63.15|
A complete list of metrics and analysis is available on the company page.
DTE Energy Co. is a diversified energy company, which is primarily engaged in the business of providing electricity and natural gas sales, distribution and storage services throughout Michigan through its subsidiaries. It operates through the following segments: DTE Electric, DTE Gas and Other. The DTE Electric segment is engaged in the generation, purchase, distribution and sale of electricity to residential, commercial and industrial customers in southeastern Michigan. The DTE Gas segment consists principally of DTE Gas, which is engaged in the purchase, storage, transportation, distribution and sale of natural gas residential, commercial and industrial customers throughout Michigan and the sale of gas storage and transportation capacity. The Other segment is involved in natural gas pipelines, gathering and storage; power and industrial projects; and energy marketing and trading operations. The company was founded in January 1995 and is headquartered in Detroit, MI.
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