CMS Energy Corporation

CMS
Utilities
$68.27
3.30%Fair Value

CMS Energy Corporation (CMS) is a Utilities company that currently yields 3.30% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $59.36 and the overvaluation threshold at $76.31. CMS Energy Corporation holds a quality score of 52/100 (Average), reflecting 14 consecutive years of dividend growth with a 67% payout ratio. The 5-year dividend CAGR stands at 5.9%.

CMS Dividend Yield History — Weiss Valuation

Underval. $59.36Overval. $76.31

Distance to undervalued

Waiting for a better entry

Needs about 13.1% downside to reach the Weiss buy zone

Undervaluation starts near $59.36, where the annual dividend would imply roughly 3.80% yield. That is 0.50% above today's yield.

Buy-zone price

$59.36

Target yield

3.80%

Research checklist

What to clear before buying the yield

Updated Aug 23, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

67%

Earnings coverage leaves room for noise.

Cash payout

N/A

Confirm cash conversion and one-off effects.

Dividend growth

5.9%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-08-222026-08-23

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

CMS Energy Corporation is trading at a fair valuation relative to its dividend history.

Current yield 3.3% vs historical max 5.7% (58% of maximum).

14 consecutive years without a dividend cut.

Reasonable payout ratio of 67%.

What matters now

Read the signal before the headline yield

Valuation is neutral here: quality has to do more of the work than entry price.

The 52/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

CMS Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$349

Year 10 Income

$866

Yield on Cost

9.16%

Total Income

$5,652

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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Dividend income log · Yield on cost · DRIP cost basis · Tax reports

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

Sharesight ↗

CMS Dividend Quality Score

Quality Score

52/ 100

Average

Payout Ratio12/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History5/15
FCF Coverage0/15

Key Metrics

Current Price$68.27
Annual Dividend$2.25
Current Yield3.30%
Yield — Max (10Y)5.69%
Yield — Min (10Y)2.99%
Undervalued Below$59.36
Overvalued Above$76.31
Payout Ratio66.92%
CAGR Dividend 5Y5.9%
CAGR Dividend 10Y6.5%
Years No Cut14y

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14
consecutive years of dividend growth