5 High Sharpe Ratio Dividend Stocks in the S&P 500

In this article, we will be taking a look at the 5 high Sharpe ratio dividend stocks in the S&P 500. To read our detailed analysis of dividend investing, you can go directly to see the 10 High Sharpe Ratio Dividend Stocks in the S&P 500.

5. CMS Energy Corporation (NYSE: CMS)

Number of Hedge Fund Holders: 31
Dividend Yield: 2.7%
Sharpe Ratio: 1.2

CMS Energy Corporation (NYSE: CMS) is an energy company operating primarily in Michigan through its Electric Utility, Gas Utility, Enterprises, and EnerBank segments. It ranks 5th on our list of high Sharpe ratio dividend stocks in the S&P 500. The company is based in Jackson, Michigan.

This July, KeyBanc’s Sophie Karp upgraded shares of CMS Energy Corporation (NYSE: CMS) from Sector Weight to Overweight alongside setting a price target of $67 on the shares.

In the second quarter of 2021, CMS Energy Corporation (NYSE: CMS) had an EPS of $0.55, beating estimates by $0.10. The company’s revenue was $1.56 billion, up 7.97% year over year and beating estimates by $50.58 million. CMS Energy Corporation (NYSE: CMS) has gained 16.45% in the past 6 months and 7.10% year to date.

By the end of the second quarter of 2021, 31 hedge funds out of the 873 tracked by Insider Monkey held stakes in CMS Energy Corporation (NYSE: CMS) worth roughly $693 million. This is compared to 28 hedge funds in the previous quarter with a total stake value of approximately $955 million.

Miller/Howard Investments, an investment management firm, mentioned CMS Energy Corporation (NYSE: CMS) in its first-quarter 2021 investor letter. Here’s what they said:

” We added CMS Energy Corp. (CMS), a name poised to benefit from above-average earnings growth. We initiated a position in this high-quality utility after a period of relative weakness in which its premium to the group narrowed.”