CMS Energy Corporation

CMS
Utilities
$74.53
2.99%Overvalued

CMS Energy Corporation (CMS) is a Utilities company that currently yields 2.99% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $58.64 and the overvaluation threshold at $75.32. CMS Energy Corporation holds a quality score of 52/100 (Average), reflecting 14 consecutive years of dividend growth with a 61% payout ratio. The 5-year dividend CAGR stands at 5.9%.

CMS Dividend Yield History — Weiss Valuation

Underval. $58.64Overval. $75.32

Distance to undervalued

Entry price is stretched

Needs 21.3% downside to reach the Weiss buy zone

Undervaluation starts near $58.64, where the annual dividend would imply roughly 3.80% yield. That is 0.81% above today's yield.

Buy-zone price

$58.64

Target yield

3.80%

Research checklist

What to clear before buying the yield

Updated May 25, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

61%

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

2026-05-232026-05-25

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

Why Now?

CMS Energy Corporation is trading near its historical overvaluation band.

Current yield 3.0% vs historical max 5.7% (52% of maximum).

14 consecutive years without a dividend cut.

Reasonable payout ratio of 61%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

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

$316

Year 10 Income

$755

Yield on Cost

7.95%

Total Income

$5,013

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

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

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$74.53
Annual Dividend$2.23
Current Yield2.99%
Yield — Max (10Y)5.70%
Yield — Min (10Y)3.00%
Undervalued Below$58.64
Overvalued Above$75.32
Payout Ratio60.79%
CAGR Dividend 5Y5.9%
CAGR Dividend 10Y6.5%
Years No Cut14y

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14
consecutive years of dividend growth