April 20, 2025 a 03:31 am
DTE: Dividend Analysis - DTE Energy Company
DTE Energy Company, a veteran in utilities, offers a reliable dividend profile with a yield of 3.11%. With a 56-year dividend distribution history, it has shown consistency in shareholder returns. The lack of recent dividend cuts bolsters investor confidence, while its moderate growth signifies steady progress. The payout ratios suggest a careful balance of rewarding shareholders while ensuring operational sustainability.
Overview 📊
DTE Energy Company operates in the utilities sector, known for stability and steady returns. Here's a quick glance at its dividend metrics:
| Metric | Value |
|---|---|
| Sector | Utilities |
| Dividend Yield | 3.11 % |
| Current Dividend per Share | $3.91 USD |
| Dividend History | 56 years |
| Last Cut or Suspension | None |
Dividend History 🗣️
A firm dividend history with 56 uninterrupted years demonstrates strong financial health and commitment to shareholder returns. Understanding past payments helps project future potential and investor confidence.
| Year | Dividend per Share |
|---|---|
| 2025 | $1.09 |
| 2024 | $4.15 |
| 2023 | $3.88 |
| 2022 | $3.61 |
| 2021 | $3.56 |
Dividend Growth 📈
Assessing dividend growth over time provides insight into financial health and company prosperity. Consistent growth indicates a company's ability to enhance shareholder value through improving earnings.
| Time | Growth |
|---|---|
| 3 years | 5.28 % |
| 5 years | 4.85 % |
The average dividend growth is 4.85% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio 📉
Payout ratios provide vital financial insights, showing how much of its income a company is returning to shareholders. Moderate ratios suggest a company is reinvesting in future growth while maintaining attractive shareholder returns.
| Key figure | Ratio |
|---|---|
| EPS-based | 57.69 % |
| Free cash flow-based | 28.63 % |
The EPS payout ratio of 57.69% and FCF payout ratio of 28.63% indicate DTE Energy maintains a balanced approach to returning profits to investors while keeping growth capacity alive.
Cashflow & Capital Efficiency ✅
Analyzing cash flow metrics and capital efficiency reveals a company's liquidity and operational competence, highlighting its long-term investment potential.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 11.27 % | -3.14 % | -6.11 % |
| Earnings Yield | 5.62 % | 6.15 % | 4.73 % |
| CAPEX to Operating Cash Flow | 0 % | 122.17 % | 170.86 % |
| Stock-based Compensation to Revenue | 0.14 % | 0 % | 0.32 % |
| Free Cash Flow / Operating Cash Flow Ratio | 1 | -0.22 | -0.71 |
The data suggest a stable cash flow, critical for sustaining dividends, with efficiency poised to improve from past anomalies.
Balance Sheet & Leverage Analysis 📊
Reviewing leverage metrics provides insights into financial robustness. Lower debt ratios suggest stronger financial health and enhanced stability to weather economic headwinds.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity Ratio | 0.22 | 1.90 | 1.85 |
| Debt-to-Assets Ratio | 0.05 | 0.47 | 0.45 |
| Debt-to-Capital Ratio | 0.18 | 0.65 | 0.65 |
| Net Debt to EBITDA | 0.63 | 5.28 | 5.83 |
| Current Ratio | 0.71 | 0.60 | 0.81 |
| Quick Ratio | 0.46 | 0.42 | 0.63 |
| Financial Leverage | 4.18 | 4.05 | 4.10 |
The balance sheet displays manageable leverage levels, suggesting a stable debt profile that supports ongoing financial commitments.
Fundamental Strength & Profitability 🗣️
Fundamentals offer insights into operational efficiency and profitability, crucial for gauging future performance potential.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 12.00 % | 12.64 % | 10.42 % |
| Return on Assets | 2.87 % | 3.12 % | 2.54 % |
| Net Profit Margin | 11.27 % | 10.96 % | 5.63 % |
| EBIT Margin | 18.63 % | 18.49 % | 9.29 % |
| EBITDA Margin | 32.54 % | 31.09 % | 17.15 % |
| Gross Profit Margin | 34.82 % | 33.95 % | 19.08 % |
| R&D to Revenue | 0 % | 0 % | 0 % |
The company's profitability metrics showcase solid returns on equity and assets, underpinning robust financial performance.
Price Development 📉
Dividend Scoring System 📈
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 31/40
Rating 🌟
Overall, DTE Energy Company presents itself as a stable investment in the utilities sector, with a strong history of dividend stability. Its balanced payout ratio and moderate growth make it an appealing choice for conservative investors looking for steady income. However, potential investors should be mindful of its current cash flow challenges. With a total score of 31 out of 40, DTE Energy is rated as a reliable dividend-paying stock, suitable for an income-focused portfolio.