Investors who want to cash in on DTE Energy Company’s (NYSE:DTE) upcoming dividend of $0.88 per share have only 3 days left to buy the shares before its ex-dividend date, 16 March 2018, in time for dividends payable on the 15 April 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into DTE Energy’s latest financial data to analyse its dividend attributes. Check out our latest analysis for DTE Energy
What Is A Dividend Rock Star?
It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: It is paying an annual yield above 75% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its dividend per share amount has increased over the past It is able to pay the current rate of dividends from its earnings It is able to continue to payout at the current rate in the future
High Yield And Dependable
DTE Energy currently yields 3.51%, which is on the low-side for Integrated Utilities stocks. But the real reason DTE Energy stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of DTE it has increased its DPS from $2.12 to $3.53 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. The current trailing twelve-month payout ratio for the stock is 53.09%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a higher payout ratio of 62.60%, leading to a dividend yield of around 3.83%. However, EPS is forecasted to fall to $5.76 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
There aren’t many other stocks out there with the same track record as DTE Energy, so I would certainly recommend further examining the stock if its dividend characteristics appeal to you. However, given this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for DTE’s future growth? Take a look at our free research report of analyst consensus for DTE’s outlook.
- Historical Performance: What has DTE’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.