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Atmos Energy Corp (NYSE:), the leading fully regulated public utility in the United States, has announced a quarterly dividend of $0.81 per share. This dividend is set for distribution on December 11, with an ex-dividend date of November 24th. The company’s consistent annual increases in dividends since 1983 have earned it the status of a dividend aristocrat, underscoring its commitment to shareholders.
Operating predominantly in Texas and serving over three million customers across eight states, Atmos has projected its trailing dividend yield to rise from the current 2.65% to a forward yield of approximately 2.89%. Historical data underscores the company’s robust dividend growth rates, with an annual increase of around eight percent over both three- and five-year periods and a decade-long expansion averaging just under eight percent. Additionally, investors have enjoyed a yield on cost of about four percent over the past five years.
Atmos maintains a balanced payout ratio, reported at just below fifty percent as of the end of September this year, which aligns with its profitability—ranked seven out of ten—and underscores ten consecutive years of positive net incomes, highlighting the company’s financial stability.
In terms of growth metrics, Atmos stands out with revenue per share and earnings per share growth surpassing more than fifty percent when compared to global competitors. This performance affirms the company’s potential for sustaining its dividend payments over time.
InvestingPro Insights
Atmos Energy Corp’s commitment to shareholder returns is further reinforced by real-time data from InvestingPro. Here are some key metrics and InvestingPro Tips that may interest investors considering ATO:
InvestingPro Data highlights include a solid market capitalization of $16.79 billion and a P/E Ratio of 18.3, which suggests a stable investment relative to earnings. The company’s revenue for the last twelve months as of Q4 2023 stood at approximately $4.28 billion, with a modest growth of 1.75%. However, the company’s gross profit margin remains impressive at 48.14%, indicating efficient management of production costs.
InvestingPro Tips reveal that Atmos Energy has maintained dividend payments for 41 consecutive years, which aligns with the company’s announcement of its recent dividend distribution. The consistency in increasing earnings per share and the ability of cash flows to sufficiently cover interest payments are also strong indicators of the company’s financial health. Notably, two analysts have revised their earnings upwards for the upcoming period, which may signal future financial robustness.
Investors looking for more insights can access additional tips on InvestingPro, which currently lists 11 tips for Atmos Energy. With the special Black Friday sale, a subscription to InvestingPro is now even more attractive, offering up to 55% off. This could be an opportune moment for investors to leverage these insights for informed decision-making in the energy sector.
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