Dividend Growth Stock Overview: Atmos Energy Corporation

Natural gas company Atmos Energy is planning on replacing between 520 and 700 miles
of pipeline in fiscal year 2015.
Photo courtesy Roy Luck/flickr.com.

About Atmos Energy Corporation

Atmos Energy is an integrated energy company that distributes and transports natural gas to nearly 3 million customers across 8 states.  Nearly 2 million customers are in Texas, where Atmos is headquartered, while the remaining customers are distributed across Kansas, Colorado, Kentucky, Tennessee, Louisiana and Mississippi.  Atmos also services a limited area in Virginia.

Atmos has both regulated and non-regulated business.  The regulated business is divided into two operating segments: distribution and pipeline/transportation.  The non-regulated business segment is involved in natural gas marketing, transportation and storage to municipalities, local gas distribution companies and industrial customers.  The non-regulated segment includes gas management, transmission, and storage.  The segment operates as Atmos Energy Holdings, Inc., a wholly owned subsidiary of Atmos Energy; its primary business is to buy, sell and deliver natural gas to about 1,000 customers.

The company is a member of the S&P Mid Cap 400 index and S&P’s High Yield Dividend Aristocrats index, and trades under the ticker symbol ATO.

Atmos Energy’s Dividend and Stock Split History

Atmos Energy and its predecessors have paid dividends since 1985; Atmos has increased dividends since 1988.  The company announces annual dividend increases in the first week of November, with the stock going ex-dividend in mid-November.

Atmos Energy has compounded its payout at an average rate of 4.3% over the last 5 years and 2.9% over the last 10 years.

Atmos Energy has split its stock once since beginning its record of annual dividend increases in 1988 – a 3-for-2 split in May 1994.

Atmos Energy’s Direct Purchase and Dividend Reinvestment Plans

Atmos Energy has both direct purchase and dividend reinvestment plans. The dividend reinvestment plan allows for partial dividend reinvestment. The fee structure is favorable for investors although there is a relatively large minimum investment required for new investments. New investors are required to purchase $1,250 or transfer in 50 currently owned shares into the plan. Atmos Energy pays all the fees on all types of purchases within the plans.

When you sell your shares in the plan, you’ll pay a transaction fee of $15 plus a 5-cent per share commission. Fees will be deducted from the proceeds of the sale.

Helpful Links

Atmos Energy Corporation’s Investor Relations Website

Current quote and financial summary for Atmos Energy Corporation (finviz.com)

Information on the direct purchase and dividend reinvestment plans for Atmos Energy Corporation

 

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