CMS Energy (CMS) Announces 40% Dividend Increase; Reduces EPS Growth Projection; Reaffirms FY10 EPS Outlook

CMS Energy (NYSE: CMS) announced today, that effective with the dividend payable November 30, 2010, it will increase its quarterly common stock dividend to $0.21 per share, up from $0.15 per share. This increase moves up the company's typical practice of raising its dividend in January, and was made at this time to coincide with an adjustment to its five-year plan. The company plans to reduce its investments by about $1 billion over the next five years, which will moderate future rate increases to its customers. The company still expects to invest more than $6 billion over the next five years in the operations of its Michigan electric and natural gas utility, Consumers Energy, and it remains one of the largest investors in the state of Michigan. Consistent with the change in its capital investment plan, CMS Energy also said it is adjusting its projection for long-term earnings per share growth to 5% to 7% annually from the previous range of 6% to 8% per year. The company also reaffirmed its guidance for 2010 adjusted earnings of $1.35 per share. John Russell, the president and chief executive officer of CMS Energy, said the increases in the quarterly dividend will bring the company's dividend more in line with the industry and reflects the confidence that the company has in its "Growing Forward" strategy. "Despite reducing capital expenditures, the company will continue to invest heavily in Michigan to maintain and improve service to customers," Russell said. "Along with investments to improve customer service, we'll continue making substantial investments in energy efficiency, renewable energy, and environmental quality programs. We plan to remain Michigan's leader in the development of clean, renewable energy."... Read more

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