DTE Energy (DTE) will raise its quarterly dividend to $0.77 per share. The increased dividend is payable January 15, 2017, to shareholders of record at the close of business December 19, 2016.
"This increase reflects the company's strong and consistent performance," said Gerry Anderson, DTE Energy Chairman and CEO. "Over the past five years, DTE Energy has provided average annual dividend increases of more than 5 percent, giving investors confidence in our ability to consistently achieve the goals the company sets. The Board's approval of this increase signals confidence in the company's performance and long-term strategic plan."
In addition, DTE is targeting an annual dividend increase of approximately 7 percent through 2019 - higher than the 5.6 percent average dividend increase over the past five years. The targeted increases, which are subject to Board approval, are intended to bring DTE Energy's dividend payout ratio in line with industry peers.
"We recognize the value of our long history of dividend growth and the role it plays in delivering above-average shareholder returns. We're optimistic about the upcoming year and our longer-term outlook is strong," Anderson added.
Based on a $93.09 stock price the new dividend yield for DTE Energy will be 3.5%.
DTE Energy is a Detroit-based energy company. Its operating units include an electric utility serving customers in Southeastern Michigan and a natural gas utility serving customers in Michigan. The company's non-utility energy businesses are focused on power and industrial projects, natural gas pipelines, gathering and storage, and energy marketing and trading. The company has issued a cash dividend for more than 100 years.