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Definitive Analysis

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Page: Dividend Discount Model

DTE Energy Company JR SUB DB 2017 E

Ticker: DTW | Industry: Regulated Electric | Sector: Utilities
$21.89 +0.03 (0.14%)
As of: 2026-01-15

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Dividend Discount Models Snapshot

ModelRangeSelected
Stable Growth DDM$68.62 - $90.62$79.35
Multi-Stage DDM$64.52 - $71.03$67.71
Blended Fair Value$73.53
Stock Price$21.55

Dividend History (Last 10 Years)

Metric2024202320222021202020192018201720162015
DPS3.7493.6503.4954.0773.9383.7413.4253.3072.9662.799
YoY %2.69%4.45%-14.28%3.54%5.27%9.20%3.57%11.49%5.99%5.40%
Yield17.396%16.940%16.218%18.920%18.273%17.357%15.895%15.347%13.766%12.988%

CAGRValue
5 Year0.04%
10 Year3.51%

Discounted Dividend Model - Stable Growth

MetricRangeSelected
LT Growth-3.86% to -1.86%-2.86%
WACC9.00%9.00%
Fair Value$68.62 - $90.62$79.35

Calculation Details (Millions)

MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(*) Adjusted Net Income1,404.001,404.001,404.00
(=) Cash Required280.80175.50105.30
Cash Retained1,404.001,404.001,404.00
(-) Cash Required-280.80-175.50-105.30
(=) Excess Retained1,123.201,228.501,298.70
(/) Shares Outstanding207,000,000207,000,000207,000,000
(=) Excess Retained per Share5.435.936.27
LTM Dividend per Share3.7493.7493.749
(+) Excess Retained per Share5.435.936.27
(=) Adjusted Dividend9.1759.68410.023

Multi-Stage Projections (BASE Case - Millions)

MetricTTMYear 1Year 2Year 3Year 4Year 5
Net Income1,404.001,363.911,324.971,287.131,250.381,214.68
Payout Ratio55.3%25.0%41.0%57.0%73.0%90.0%
Projected Dividends776.00340.98543.24733.67912.781,093.21

Multi-Stage Valuation (Millions)

Present ValuesLOWBASEHIGH
Year 1 PV323.24326.60329.96
Year 2 PV467.59477.36487.24
Year 3 PV573.39591.47609.92
Year 4 PV647.74675.11703.34
Year 5 PV704.40741.80780.77
TV PV10,639.3211,204.2411,792.92
Equity Value13,355.6614,016.5814,704.15
Fair Value$64.52$67.71$71.03
Stock Price$21.55$21.55$21.55

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