SOURCE: Advisor Access

June 03, 2015 09:30 ET

CMS Energy Corp. CEO John Russell Interviewed by Advisor Access

SAN FRANCISCO, CA--(Marketwired - Jun 3, 2015) - Utilities provide investors with an attractive total return profile and significant dividend yields in today's low interest rate environment.

CMS Energy Corporation (NYSE: CMS) primarily operates a regulated electric and natural gas utility, Consumers Energy, which serves 6.6 million of Michigan's Lower Peninsula residents. Consumers Energy operates a large asset base of electric generation facilities, wind turbines, distribution systems, and natural gas pipelines, making the utility one of the largest investors in Michigan. The utility is the fourth largest combination electric and gas utility in the U.S. with total revenues of $6.8 billion and 1.8 million electric customers and 1.7 million gas customers.

Advisor Access: What makes utilities an attractive asset class to invest in?

John Russell: Utilities provide investors with an attractive total shareholder return profile. Utilities are able to invest in regulated assets and generate a return on the equity portion of their investment. By growing their asset base, regulated utilities generate earnings per share growth. In addition, utilities provide an attractive dividend yield. What differentiates one utility from another is having the opportunity to make new infrastructure investments along with the constructive regulation that allows the utility to earn an attractive return on those investments.

AA: What differentiates CMS from other companies in the utilities sector?

JR: CMS Energy has demonstrated a sustainable growth strategy over the last decade by consistently delivering 7% earnings per share growth annually. Each year, CMS Energy grows off its prior year's actual result. Looking forward, the company plans to grow earnings per share 5% to 7% annually, compared to a peer group average of 4% to 6%. The company's growth is fueled by our large investment program, which is growing faster than any other U.S. utility. Over the next 10 years, CMS Energy does not plan on any large projects or "big bets" that a riskier utility might invest in.

AA: What are some trends in the utilities space that may benefit CMS? What about trends related to your region of operation?

Read the answer to this question and the full interview with CEO John Russell by clicking HERE.

About Advisor Access

Advisor-Access LLC was designed to bring compelling new investment ideas to investors in the form of in-depth interviews with company management and the latest fact sheets and corporate presentations, in a concise format; the critical pieces of information an investor needs to make an informed investment decision.

DISCLOSURE:

CMS Energy Corp. paid Advisor Access to produce and distribute this interview. CMS had final approval of the content and is wholly responsible for the validity of the statements. Opinions expressed are those of CMS Energy Corp. and not of Advisor Access or its employees, contractors or owners.

Contact Information