DALLAS - Atmos Energy Corporation (NYSE: NYSE:ATO), a natural gas-only distributor, announced a quarterly dividend increase to 87.0 cents per share on the company's common stock. The board of directors confirmed that this dividend is payable on December 9, 2024, to shareholders who are on record as of November 25, 2024.
The increase marks a rise from the Fiscal 2024 annual dividend of $3.22 to an indicated annual dividend of $3.48 for Fiscal 2025. This upcoming dividend payment represents the 164th consecutive quarterly dividend by the company.
Serving as the largest distributor of natural gas in the country, Atmos Energy is an S&P 500 company based in Dallas. It provides natural gas services to over 3 million distribution customers in more than 1,400 communities across eight states predominantly in the South. The company emphasizes its commitment to safety, innovation, environmental sustainability, and community investment as part of its vision to be the safest provider of natural gas services.
In addition to its distribution services, Atmos Energy also manages significant pipeline and storage assets, including a substantial intrastate natural gas pipeline system in Texas.
The information regarding the dividend increase is based on a press release statement from Atmos Energy Corporation.
In other recent news, Atmos Energy has seen a series of significant developments. The company has issued $650 million in senior notes, securing approximately $638.1 million in net proceeds. The strategic financial move was facilitated by Mizuho (NYSE:MFG) Securities USA, TD Securities, and U.S. Bancorp (BVMF:USBC34) Investments. The funds are expected to support Atmos Energy's ongoing and future projects.
In terms of earnings, Atmos Energy's third fiscal quarter 2024 earnings per share increased from $5.33 to $6, driven by regulatory outcomes, customer expansion, and robust system revenues. Jefferies has initiated coverage on shares of Atmos Energy with a Hold rating, reflecting the company's steady performance in the medium term relative to its peers in the gas sector. Meanwhile, Mizuho Securities has raised Atmos Energy's price target from $138 to $148, maintaining an Outperform rating.
The company also welcomed Michelle H. Faulk as Vice President and Controller, and Telisa Toliver to its board of directors. These recent developments underline Atmos Energy's strategic moves and financial performance.
InvestingPro Insights
Atmos Energy Corporation's recent dividend increase aligns with its strong track record of shareholder returns. According to InvestingPro data, the company has raised its dividend for an impressive 31 consecutive years, demonstrating a consistent commitment to returning value to shareholders. This long-term dividend growth strategy is further supported by the company's solid financial position, with InvestingPro Tips highlighting that Atmos Energy has maintained dividend payments for 42 consecutive years.
The company's ability to sustain and grow its dividend is underpinned by its profitability. InvestingPro data shows that Atmos Energy has a P/E ratio of 20.38, which, while relatively high, is balanced by the company's consistent performance. The dividend yield stands at 2.33%, offering a steady income stream for investors.
Atmos Energy's financial health is further reinforced by its strong balance sheet. An InvestingPro Tip notes that the company's liquid assets exceed short-term obligations, indicating a robust financial position that supports its dividend policy and operational stability.
For investors seeking more comprehensive insights, InvestingPro offers 8 additional tips for Atmos Energy, providing a deeper understanding of the company's financial outlook and market position.
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