Atmos Energy Corporation: A Solid Pick for a Buy and Hold Portfolio

Atmos Energy Corporation (ATO) is a solid pick for a buy and hold portfolio due to its safe and reliable natural gas services, strong balance sheet, and 41 consecutive years of dividend growth. The company has implemented $153.2 million in regulatory initiatives and maintains $5.3 billion in available liquidity. With a dividend yield of 2.23%, ATO is a reliable choice for long-term investors.

Atmos Energy Corporation (ATO) has consistently been recognized as a strong candidate for buy and hold portfolios, thanks to its safe and reliable natural gas services, robust balance sheet, and a remarkable track record of dividend growth. The company's strategic focus on regulatory initiatives and infrastructure upgrades has positioned it as a stable investment option for long-term investors.

In its latest fiscal Q2 2025 earnings report, Atmos Energy Corporation highlighted that it had implemented $153.2 million in regulatory initiatives by May 7, 2025, or $154.0 million when adjusted for excess deferred tax amortization. Additionally, the company has $389.1 million worth of initiatives currently underway, demonstrating its commitment to regulatory compliance and operational efficiency [1].

The company's financial health is further underscored by its strong balance sheet, with approximately $5.3 billion in available liquidity and $1.0 billion in financing to sustain operations. In a move to bolster its financial position, Atmos Energy Corporation issued $650 million in 30-year senior notes with a 5.00% interest rate and settled $380 million in equity forwards. As of March 31, 2025, the company’s equity capitalization stood at 61% [1].

One of the key attractions for investors is Atmos Energy Corporation's long history of dividend growth. The company has increased its dividends for 41 consecutive years, providing a stable income stream for shareholders. As of July 31, 2025, Atmos Energy Corporation pays a quarterly dividend of $0.87 per share, with a dividend yield of 2.23% [1].

While the company's dividend yield is attractive, it is essential to consider the broader market trends and the potential for other investments. For instance, other high-yield energy stocks such as Energy Transfer (ET) and Enterprise Products Partners (EPD) offer even higher yields, but they come with more cyclical risks and less predictable growth [2].

In summary, Atmos Energy Corporation (ATO) stands out as a reliable choice for long-term investors seeking stability and steady income. Its focus on regulatory compliance, strong balance sheet, and consistent dividend growth make it a compelling option for buy and hold portfolios. However, investors should consider their risk tolerance and diversification needs before making investment decisions.

References:
[1] https://finance.yahoo.com/news/makes-atmos-energy-corporation-ato-035701290.html
[2] https://www.aol.com/2-high-yield-energy-stocks-103000723.html