CMS Boosts Dividend, But Cuts Long-Term Outlook

Jackson-based CMS Energy announced Friday that effective with the dividend payable Nov. 30, it will increase its quarterly common stock dividend to 21 cents per share, up from 15 cents per share. However, the company also cut its long-term growth and investing predictions.

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 percent to 7 percent annually from the previous range of 6 percent to 8 percent per year.

The company also reaffirmed its guidance for 2010 adjusted earnings of $1.35 per share.

John Russell, president and CEO 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."

Russell and Tom Webb, CMS Energy's executive vice president and chief financial officer, will discuss the company's dividend increase, capital investment plan, and provide a business and financial outlook at 9 a.m. EDT on Tuesday, Aug. 10.

The presentation will be available on CMS Energy's Web site, www.cmsenergy.com. An audio replay will be available approximately two hours after the Webcast and will be archived for 30 days on CMS Energy's website in the "Investor Relations" section.

CMS Energy (NYSE: CMS) is a Michigan-based company that has an electric and natural gas utility, Consumers Energy, as its primary business and also owns and operates independent power generation businesses.

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