August 04, 2025 a 07:31 am
DTE: Dividend Analysis - DTE Energy Company
The DTE Energy Company represents a robust investment opportunity with a solid track record of dividend payments and a strong market presence. Given its consistent dividend history of 56 years without cuts, investors seeking long-term stability might find this stock appealing. However, with an EPS payout ratio at 56.13% and a significantly high free cash flow payout ratio of 162.79%, caution is advised in assessing its dividend sustainability.
📊 Overview
Current snapshot of DTE Energy Company illustrates a resilient energy sector giant with significant dividend payouts. Its 3.15% dividend yield underlines attractiveness for income-focused portfolios.
| Metric | Details |
|---|---|
| Sector | Energy |
| Dividend yield | 3.15% |
| Current dividend per share | 3.91 USD |
| Dividend history | 56 years |
| Last cut or suspension | None |
📈 Dividend History
The impressive history of uninterrupted dividends over 56 years makes DTE Energy a defensive choice for risk-averse investors. This stability is a testament to the company’s consistent financial performance.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.27 |
| 2024 | 4.15 |
| 2023 | 3.88 |
| 2022 | 3.61 |
| 2021 | 3.56 |
📉 Dividend Growth
DTE Energy's ability to increment dividends consistently over the years ensures investor confidence and showcases effective capital management.
| 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
Analyzing payout ratios is crucial for evaluating dividend safety. While the EPS-based payout ratio of 56.13% suggests sustainable dividends, the excessive 162.79% FCF-based payout ratio raises concerns over long-term dividend viability, especially under cash flow constraints.
| Key Figure | Ratio |
|---|---|
| EPS-based | 56.13% |
| Free cash flow-based | 162.79% |
💵 Cashflow & Capital Efficiency
Exploring the cash flow metrics reveals insights into the firm’s operational viability and capital efficiency, crucial elements for ongoing dividend provisions.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | -6.11% | -3.14% | -3.30% |
| Earnings Yield | 4.73% | 6.15% | 5.62% |
| CAPEX to Operating Cash Flow | 1.71 | 1.22 | 1.23 |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | -0.71 | -0.22 | -0.23 |
With negative free cash flow yields, there is a significant challenge in covering dividends fundamentally from operational efficiency.
💼 Balance Sheet & Leverage Analysis
Understanding balance sheet metrics is vital to assess the firm’s capacity to meet financial obligations and sustain operations during adverse conditions.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 1.85 | 1.90 | 1.99 |
| Debt-to-Assets | 0.45 | 0.47 | 0.48 |
| Debt-to-Capital | 0.65 | 0.65 | 0.67 |
| Net Debt to EBITDA | 5.90 | 5.28 | 5.73 |
| Current Ratio | 0.81 | 0.60 | 0.71 |
| Quick Ratio | 0.63 | 0.42 | 0.46 |
| Financial Leverage | 4.10 | 4.05 | 4.18 |
The increase in leverage ratios indicates heightened financial risk, suggesting vigilance for investors concerning debt levels.
🏢 Fundamental Strength & Profitability
These metrics are essential for understanding overall company health and profitability, vital for driving long-term growth and assuring dividends.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 10.42% | 12.64% | 12.00% |
| Return on Assets | 2.54% | 3.12% | 2.87% |
| Net Margin | 5.63% | 10.96% | 11.27% |
| EBIT Margin | 9.29% | 18.49% | 18.63% |
| EBITDA Margin | 16.93% | 31.09% | 32.54% |
| Gross Margin | 19.08% | 33.95% | 34.82% |
| Research & Development to Revenue | 0% | 0% | 0% |
Despite positive profitability metrics, the absence of R&D investment could imply limited growth projections in innovative areas.
📈 Price Development
🗣️ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Total Dividends Score: 27/40
✅ Rating
Given the consistent dividend history and moderate growth, DTE Energy is a reliable choice for those prioritizing income stability over aggressive growth. Investment in DTE Energy is recommended for conservative investors who value sustained dividend payouts amidst manageable financial risks.