Monday, April 11, 2011

ATMOS ENERGY CORP. symbol ATO - Dividend Machine & largest gas only utility in the US

Energy is always in demand and as the largest gas only utility in the US
 Atmos Energy Corp., symbol ATO will not only warm your home it will fill your coffers with a very nice dividend yield of $1.35/share. ATO is for income investors.

ATO is one solid company.  I recommend you use D/E ratio (debt to equity ratio) to screen for solid companies.  ATO’s D/E/ ratio is 1.06.   But wait; there is more.   As you develop your skills at evaluating potential income investments, you may find other measures that help to decide among and between income investment opportunities.  ATO has a book value of $25.07.  Book value implies that if you dismantle the company and sell off all its assets, you should receive a value of about $25.07 per share.  ATO closed on Friday, April 8 at $33.80.  Makes you feel good to know it is such a solid company. 

ATO qualifies as a dividend machine.  Earnings are $2.00 per year per share and growing steadily.  Dividend payout is $1.35 per share per year and also growing steadily. Dividend yield is 3.99%

This may be a good time to buy ATO.  It tends to be soft in February and May.  Many companies have seasonal price trends.   If you have the money to invest at this time and a gas energy play would fit your diversification goal, try ATO.

Very Truly Yours,