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CMS Energy Corporation (CMS) logo

CMS Energy Corporation

S&P 500
CMS|Utilities|Utilities - Regulated Electric|$72.61|P/E 20.1|MCap 22.4B|NYSE

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

73/ 100Safe

CMS's dividend appears safe and well-supported. Strengths include a 60.8% earnings payout ratio & 30.6% fcf payout ratio. Areas of concern: 2.6x interest coverage & 0.8x current ratio. The dividend has been growing at a 5.90% 5-year CAGR. As a utility, higher payout ratios and leverage are typical for this regulated sector.

Based on 15 of 15 metrics

Strengths

  • Earnings Payout Ratio: 60.8%Low earnings payout ratio leaves room to grow the dividend.
  • FCF Payout Ratio: 30.6%Free cash flow comfortably covers the dividend.
  • Dividend Streak: 11+ yrsLong, uninterrupted dividend track record.

Risks

  • Interest Coverage: 2.6xInterest coverage is thin relative to debt servicing.
  • Current Ratio: 0.8xLimited short-term liquidity to meet obligations.

Payout & Coverage

Safe
Earnings Payout Ratio
60.8%Very Safe
FCF Payout Ratio
30.6%Very Safe
CFO Payout Ratio
33.2%Safe
Interest Coverage
2.6xWarning

Balance Sheet

Caution
Net Debt / Total Assets
46.0%Caution
Current Ratio
0.8xWarning
Debt-to-Equity
189.8Safe

Profitability

Safe
Return on Equity
10.4%Caution
Operating Margin
19.8%Safe
Gross Margin
39.4%Safe
Profit Margin Stability
ModerateCaution

Dividend Track Record

Very Safe
Dividend Streak
11+ yrsVery Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
5.9%Safe
Earnings Stability
GrowingVery Safe

About CMS Energy Corporation

CMS Energy Corporation is an energy holding company operating primarily through its subsidiary Consumers Energy, Michigan's largest electric and natural gas utility serving approximately 6.8 million residents across the state's Lower Peninsula. The company provides regulated electric service to 1.8 million customers and natural gas service to 1.8 million customers, operating as one of the nation's largest combination utilities. CMS Energy's second major business segment, NorthStar Clean Energy, engages in wholesale power generation and operates independent power generating plants across several states, offering custom energy and carbon reduction solutions to commercial clients. The company maintains substantial natural gas storage capacity among the largest in the United States, supporting seasonal energy needs. CMS Energy is transitioning toward cleaner energy sources, with approximately 10 percent of its power supply derived from wind, solar, hydro, and biomass resources. The company serves as a regulated utility in the utilities sector, providing essential energy infrastructure and services to residential, commercial, and industrial customers throughout Michigan and beyond.

Dividend Overview

Dividend Yield

3.03%

Annual Dividend

$2.20

Frequency

Quarterly

Payout Ratio

60.79%

FCF Payout Ratio

30.55%

Stock Price

$72.61

52-Week Range

$67.71 $80.36

Dividend History (2016–2025)

CMS annual dividend per share and yield history

Earnings & Profitability

CMS earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

May 8, 2026

Next Payment Date

May 29, 2026

Dividend Growth

3-Year Dividend CAGR

5.68%

5-Year Dividend CAGR

5.90%

10-Year Dividend CAGR

6.47%

3-Year Total Growth

18.02%

5-Year Total Growth

33.22%

10-Year Total Growth

87.20%

Income Calculator

CMS Dividend Calculator

Total Investment

$7,261.00

Annual Income

$219.90

Quarterly Income

$54.97

Monthly Income

$18.33

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Frequently Asked Questions

What is CMS's current dividend yield?
CMS Energy Corporation (CMS) currently has a dividend yield of 3.03%, based on a stock price of $72.61 and an annual dividend of $2.20.
When is CMS's next dividend payment date?
CMS's next ex-dividend date is 2026-05-08 and the next payment date is 2026-05-29. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does CMS pay in dividends per year?
CMS Energy Corporation paid $2.17 per share in annual dividends in 2025. The dividends are paid quarterly.
Has CMS been increasing its dividend?
CMS Energy Corporation has grown its dividend at a 5-year CAGR of 5.90% and a 10-year CAGR of 6.47%.
Is CMS's dividend safe?
CMS Energy Corporation has a payout ratio of 60.79%. Its free cash flow payout ratio is 30.55%. The payout ratio is moderate. Monitor earnings to ensure sustainability.
How is CMS's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates CMS Energy Corporation's dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for utilities companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.