April 22, 2025 a 02:46 am
DTE: Dividend Analysis - DTE Energy Company
DTE Energy Company has maintained a stable dividend policy with a continuous increase in dividends over the past 56 years. The current yield of 3.11% offers a competitive return for investors seeking income in the utilities sector. Notably, the company has not cut or suspended dividends recently, reinforcing its commitment to shareholders.
📊 Overview
The overview of DTE Energy Company highlights its position in the utilities sector with a significant emphasis on dividend distribution.
| Metrics | 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
The dividend history of DTE Energy Company underscores its long-term commitment to returning value to shareholders, with a notable consistency in payments. This provides a strong foundation for investor confidence.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.09 |
| 2024 | 4.15 |
| 2023 | 3.88 |
| 2022 | 3.61 |
| 2021 | 3.56 |
📈 Dividend Growth
The dividend growth rates over the past few years demonstrate DTE Energy Company's ability to incrementally enhance shareholder returns, which is essential for long-term wealth accumulation.
| 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
The payout ratio is a critical measure that assesses the sustainability of the company's dividends. DTE Energy Company's EPS-based payout ratio stands at 57.69%, while the free cash flow-based payout ratio is 28.66%.
| Key Figure | Ratio |
|---|---|
| EPS-based | 57.69 % |
| Free cash flow-based | 28.66 % |
The EPS payout ratio of 57.69% suggests that DTE is prudently managing its profit distribution to maintain affordability, complemented by a robust free cash flow coverage of 28.66%.
🔍 Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency is vital to understanding how well DTE Energy converts revenues into cash flow and utilizes its capital.
| Year | 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 | 0.07% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 100% | -22.17% | -70.86% |
DTE Energy displays a strong capital efficiency trend, though recent fluctuations in CAPEX and free cash flow portray volatility that warrants close attention.
🧮 Balance Sheet & Leverage Analysis
Examining balance sheet health and leverage metrics is crucial to understanding DTE Energy's financial stability and ability to meet long-term obligations.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 21.96% | 189.77% | 185.05% |
| Debt-to-Assets | 5.26% | 46.86% | 45.08% |
| Debt-to-Capital | 18.01% | 65.49% | 64.92% |
| Net Debt to EBITDA | 0.63 | 5.28 | 5.90 |
| Current Ratio | 0.71 | 0.60 | 0.81 |
| Quick Ratio | 0.46 | 0.42 | 0.63 |
| Financial Leverage | 4.18 | 4.05 | 4.10 |
DTE's leverage metrics highlight a relatively high debt burden with notable volatility, posing management challenges.
📐 Fundamental Strength & Profitability
Key profitability and efficiencies like Return on Equity (RoE) and margins help indicate how effectively DTE Energy is generating profits from its resources.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 12.00% | 12.64% | 10.42% |
| Return on Assets | 2.87% | 3.12% | 2.54% |
| Net Margin | 11.27% | 10.96% | 5.63% |
| EBIT Margin | 18.63% | 18.49% | 9.29% |
| EBITDA Margin | 32.54% | 31.09% | 16.93% |
| Gross Margin | 34.82% | 33.95% | 19.08% |
| Research & Development to Revenue | 0% | 0% | 0% |
DTE Energy's foundational strengths show robust profitability metrics though R&D investment appears minimal, potentially impacting future innovation.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 3 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 2 |
Total Score: 27/40
⚠️ Rating
The comprehensive analysis of DTE Energy Company indicates a stable dividend-paying organization with notable strengths in dividend stability and yield. However, the balance sheet and cash flow volatility pose potential risks. For those prioritizing steady income, DTE is worthy of consideration, though diversifying within a balanced portfolio is recommended.