10 Safest Dividend Stocks to Buy Now

7. CMS Energy Corporation (NYSE:CMS)

Beta: 0.42

Dividend Yield: 2.92%

No. of Hedge Funds: 33

CMS Energy Corporation (NYSE:CMS) offers electric and natural gas services to close to 7 million customers in Michigan, where it is headquartered. The company primarily operates through its principal subsidiary, Consumers Energy, focusing on clean energy and infrastructure reliability. Competing against strong contenders like DTE Energy and Xcel Energy, CMS Energy Corporation (NYSE:CMS) generates market share through a balanced approach to energy generation. This approach, which includes renewables and natural gas, supports regulatory compliance in an ever-changing utility environment.

The 52-week gain of 24.09% far surpasses the broader market, and CMS Energy Corporation (NYSE:CMS) also announced an adjusted EPS of $3.34 in Q4 2024, which was at the high end of its guidance range. The new five-year $20 billion utility customer investment plan, which is almost an 18% increase from the previous plan, is expected to deliver an 8.5% rate base growth by the end of 2029. Additionally, the data centers and manufacturing sector are expected to increase annual load growth by 3% in Michigan, thus receiving a positive outlook for the 2025 performance.

The beta of just 0.42 makes CMS Energy Corporation (NYSE:CMS) a favorite for low-risk portfolios. The 2.92% dividend yield represents the conservative risk profile. Insider Monkey database noted 33 hedge funds holding positions at the end of Q4 2024, earning a solid place among the safest stocks to buy.