Thursday, February 16, 2012

Atmos Energy ATO Dividend Machine

Atmos Energy's corporate logoImage via Wikipedia
Dividend Machine for week of February 13, 2012

Atmos Energy, ATO is the company I have selected for the dividend machine for this week.   ATO was a dividend machine in 2011.   ATO, an energy company, continues to grow both the money it makes and the money it pays you in a dividend.  However, the stock price has gone now where since I profiled it last year.
            I was hoping to find a company that met all the dividend machine criteria  and that had call option income potential.  None was obvious.  When the market is volatile, when it moves up and down several times during a week, the astute income investor can sometimes snag a good company that will pay the required dividend and have covered call income.

ATO is simply a company that knows how to do what it does.  We income investors always need a core group of these companies.   I like ATO because its dividend yield is 4.38 percent, which is well above our 3.0 percent threshold.  Today, ATO traded around $31.50

Here is what  I really like about ATO, it earned $3.01 during the past four quarters.  During that same period, the dividend was $1.365.   This low pay out ratio is another reason I like ATO.    If you own ATO by February 23, 2012, you will receive the quarterly dividend of $.345 on March 12.   ATO’s D/E ratio is 1.14 which is a touch higher than one but within the industry standard.

You may want to review the original post on ATO for 2011 to determine if ATO deserves a place in your dividend income portfolio.

Very Truly Yours,


A dividend machine each week and periodic opinions on bonds and options throughout the week.
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