DTE Energy (DTE) will cut its dividend by 24 percent in 2021 because of the separation of the company's midstream business. Last year DTE raised its quarterly dividend by 7.2 percent to $1.085 per share in 2020, marking the 11th consecutive year of dividend increases by the utility company.

As previously announced, the Board of Directors authorized management to spin off the midstream company. “The spin generates a combined dividend of DTE and DT Midstream (NYSE: DTM) that is expected to be higher than DTE’s pre-spin dividend,” said Jerry Norcia, DTE Energy president and CEO.

DTE Energy states that it expects to continue a payout ratio and dividend growth target consistent with pure-play utility companies.  DTM plans to establish a growing dividend with an initial level competitive with midstream peers. DT Midstream expects to provide its first dividend during its second quarter earnings call at a date to be announced.

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.