JACKSON, Mich., Jan. 23, 2014 /PRNewswire/ -- The Board of Directors of CMS Energy increased today the quarterly dividend on the company's common stock by 6 percent, to 27 cents per share, up from 25.5 cents per share.
Based on Wednesday's closing price for CMS Energy common stock, $26.93, the higher dividend represents an annualized yield of 4 percent.
The first quarter dividend for the common stock is payable Feb. 28, 2014 to shareholders of record on Feb. 7, 2014.
John Russell, CMS Energy's president and chief executive officer, said the Board's decision to increase the dividend to $1.08 per share on an annualized basis reflects the underlying strength and successful execution of the company's business strategy.
"We're making substantial capital investments to serve customers and improve the environment, while creating value for our investors. Our prudent, disciplined execution of this strategy allows CMS Energy to deliver operational excellence and provide consistent financial results for investors," Russell said.
"The common stock dividend increase announced today is the eighth increase in as many years and keeps CMS Energy's payout ratio in line with the average of our utility peers. Our long-term business plan calls for 5 percent to 7 percent annual earnings growth and we expect to continue to increase our dividend as we execute our investment strategy and increase our earnings."
Russell said that CMS Energy's principal subsidiary, Consumers Energy, a Michigan electric and natural gas utility, plans to invest about $15 billion in its operations over the next 10 years, making it the second-largest investor in the state.
CMS Energy (NYSE: CMS) is a Michigan-based company that has an electric and natural gas utility, Consumers Energy, as its primary business and also owns and operates independent power generation businesses.
This news release contains "forward-looking statements" as defined in Rule 3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energy's and Consumers Energy's Securities and Exchange Commission filings. Forward-looking statements should be read in conjunction with "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections of CMS Energy's Form 10-K and Consumers Energy's Form 10-K each for the year ended December 31, 2012 and as updated in CMS Energy's and Consumers Energy's Forms 10-Q.
CMS Energy's and Consumers Energy's "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections are incorporated herein by reference and discuss important factors that could cause CMS Energy's and Consumers Energy's results to differ materially from those anticipated in such statements.
For more information on CMS Energy, please visit our web site at: www.cmsenergy.com
SOURCE CMS Energy