Atmos Energy (ATO) Declares $0.74 Dividend

Atmos Energy said on February 7, 2023 that its board of directors declared a regular quarterly dividend of $0.74 per share ($2.96 annualized). Shareholders of record as of February 16, 2023 will receive the payment on March 6, 2023. Previously, the company paid $0.74 per share.

At the current share price of $114.60 / share, the stock's dividend yield is 2.58%. Looking back five years and taking a sample every week, the average dividend yield has been 2.33%, the lowest has been 1.84%, and the highest has been 2.92%. The standard deviation of yields is 0.26 (n=236).

The current dividend yield is 0.97 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.52. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.29%, demonstrating that it has increased its dividend over time.

Analyst Price Forecast Suggests 10.96% Upside

As of February 10, 2023, the average one-year price target for Atmos Energy is $127.16. The forecasts range from a low of $108.07 to a high of $138.60. The average price target represents an increase of 10.96% from its latest reported closing price of $114.60.

The projected annual revenue for Atmos Energy is $4,600MM, a decrease of 1.56%. The projected annual EPS is $6.05, an increase of 6.24%.

What is the Fund Sentiment?

There are 1281 funds or institutions reporting positions in Atmos Energy. This is an increase of 17 owner(s) or 1.34% in the last quarter. Average portfolio weight of all funds dedicated to ATO is 0.28%, a decrease of 2.53%. Total shares owned by institutions increased in the last three months by 1.85% to 142,564K shares. The put/call ratio of ATO is 0.30, indicating a bullish outlook.

What are large shareholders doing?

Aristotle Capital Management holds 9,953K shares representing 7.06% ownership of the company. In it's prior filing, the firm reported owning 10,017K shares, representing a decrease of 0.64%. The firm decreased its portfolio allocation in ATO by 5.14% over the last quarter.

Wellington Management Group Llp holds 7,451K shares representing 5.28% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.

Deutsche Bank Ag\ holds 4,905K shares representing 3.48% ownership of the company. In it's prior filing, the firm reported owning 4,918K shares, representing a decrease of 0.25%. The firm decreased its portfolio allocation in ATO by 88.23% over the last quarter.

VEIPX - Vanguard Equity Income Fund Investor Shares holds 4,503K shares representing 3.19% ownership of the company.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,177K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 4,086K shares, representing an increase of 2.19%. The firm decreased its portfolio allocation in ATO by 3.17% over the last quarter.

Atmos Energy Background Information
(This description is provided by the company.)

Atmos Energy Corporation is the nation's largest fully regulated, natural gas-only distributor of safe, clean, efficient and affordable energy. As part of its vision to be the safest provider of natural gas services, the company is modernizing its business and its infrastructure while continuing to invest in safety, innovation, environmental sustainability and its communities. An S&P 500 company headquartered in Dallas, Atmos Energy serves more than 3 million distribution customers in over 1,400 communities across eight states and manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas.

This story originally appeared on Fintel.