2024-07-18 07:00:00 ET
Summary
- DTE Energy has been operating for 175 years, which is a testament to its consistency as a business.
- The company has a very sustainable path to deliver 6% to 8% annual operating EPS growth in the years to come.
- DTE's balance sheet is reasonably well-capitalized.
- Shares of the electric and gas utility could be trading at a 9% discount to fair value.
- DTE could be positioned to generate 34% cumulative total returns by the end of 2026.
In business, continuity is very important to the fulfillment of my investment objectives. Put another way, I want to examine/own businesses that stand a good chance of being around in 10 years, 20 years, and 30 years.
One of my favorite sectors is utilities. It's also not hard to understand why. Although the sector has to adapt to technological changes, substitute risk is minimal. I don't have an exact probability of humanity discovering a cheaper/more efficient alternative in my lifetime to electricity, water, and/or natural gas. However, I'm not a betting man, and even I'm willing to venture that it's rather close to zero....
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DTE Energy: Buy This Dividend Grower On Sale Now