Atmos Energy (NYSE:ATO) engages in regulated natural gas distribution, and pipeline storage businesses in the United States. Its shares have climbed 22% year-over-year as of close on February 21. The stock boasts a high valuation, but today it will hold our interest as it qualifies as a dividend aristocrat.
The company released its first quarter fiscal 2020 results on February 4. Consolidated operating income rose $16.3 million year-over-year to $252.8 million on the back of positive rate outcomes and customer growth in its distribution business. Atmos generated operating cash flow of $172.4 million – a $7.8 million increase from Q1 FY2019.
In the report Atmos also provided guidance for the full year. It expects earnings per share to be in the range of $4.58 to $4.73 per diluted share for the fiscal year 2020. Atmos is projecting capital expenditures to be the range of $1.85 billion to $1.95 billion. Naturally, it saved the best news for last.
The board of directors declared a quarterly dividend of $0.575 per share in the quarterly report. This represents a 9.5% dividend increase from the prior year, and a 1.9% yield. Atmos has achieved dividend-growth for 25 consecutive years, which has thrust it into the formidable group of dividend aristocrats. Shares are trading near its 52-week high, so this dividend stock does not offer a discount for value investors right now. However, it is still a worthy target for those that want an energy stock in their portfolio with a strong history as a dividend payer.
