Dividend Coverage: This Gas Utility Company Raised its Dividend by 7.8%; Will to Trade Ex-Dividend on 24 November, 2017
LONDON, UK / ACCESSWIRE / November 22, 2017 / Pro-Trader Daily takes a closer look at Atmos Energy Corp. (NYSE: ATO) as the Company's stock will begin trading ex-dividend on November 24, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on November 22, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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Dividend Declared
On November 08, 2017, Atmos Energy announced that its Board of Directors declared a quarterly dividend increase on the Company's common stock to $0.485 per share. The indicated annual dividend for fiscal 2018 is $1.94, which represents a 7.8% increase over fiscal 2017 annual dividend of $1.80. The dividend will be paid on December 11, 2017, to shareholders of record on November 27, 2017.
Atmos Energy's indicated dividend represents a yield of 2.17% compared to the average dividend yield of 2.34% for the Utilities sector. This is the Company's 136th consecutive quarterly dividend.
Dividend Insights
Atmos Energy has a dividend payout ratio of 53.7%, which means that the Company spends approximately $0.54 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Atmos Energy is forecasted to report earnings of $4.08 for the next year, which is more than double compared to the Company's annualized dividend of $1.94 per share.
As of September 30, 2017, Atmos Energy's cash and cash equivalents totaled $26.41 million compared to $47.53 million as on September 30, 2016. For the year ended September 30, 2017, the Company generated operating cash flow of $867.1 million, a $72.1 million increase compared to the year ended September 30, 2016. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for Atmos Energy
On November 08, 2017, Atmos Energy reported that for the quarter ended September 30, 2017, net income from continuing operations was $35.9 million, or $0.34 per diluted share, compared to net income from continuing operations of $34.9 million, or $0.33 per diluted share, for Q4 FY16.
For Q4 FY17, Atmos Energy's distribution gross profit increased $17.7 million to $274.7 million compared with $257.0 million in Q4 FY16. The Company's gross profit reflected a net $13.3 million increase in rates, primarily in the Mid-Texas, Louisiana, West Texas, Mississippi, and Kentucky/Mid-States Divisions.
About Atmos Energy
Atmos Energy, headquartered in Dallas, is the Country's largest fully-regulated, natural-gas-only distributor, serving over three million natural gas distribution customers in over 1,400 communities in eight states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energy also manages Company-owned natural gas pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas.
Stock Performance
At the closing bell, on Tuesday, November 21, 2017, Atmos Energy's stock was slightly up 0.35%, ending the trading session at $89.42. A total volume of 459.51 thousand shares have exchanged hands, which was higher than the 3-month average volume of 333.06 thousand shares. The Company's stock price surged 1.29% in the last three months, 8.84% in the past six months, and 22.76% in the previous twelve months. Moreover, the stock rallied 20.59% since the start of the year. The stock is trading at a PE ratio of 24.78 and has a dividend yield of 2.17%. The stock currently has a market cap of $9.55 billion.
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