14 Best Dividend Growth Stocks to Buy and Hold in 2026

7. Atmos Energy Corporation (NYSE:ATO)

5-Year Average Dividend Growth Rate: 8.97%

Dividend Yield as of January 4: 2.36%

Atmos Energy Corporation (NYSE:ATO) is one of the best dividend aristocrat stocks to invest in.

On December 16, Morgan Stanley downgraded Atmos Energy Corporation (NYSE:ATO) to Equal Weight from Overweight and lowered its price target to $172 from $182 as part of its 2026 utilities outlook. The firm said utility stock performance in 2026 will be shaped by data center demand and pockets of growth, with “no slowing of activity or relief to grid tightness.” In that setting, Morgan Stanley urged investors to steer clear of political and regulatory risk, especially in an active election year.

Atmos Energy currently offers a forward dividend yield of about 2.3%. On the surface, that looks modest. Over time, the growth tells a different story. The company’s quarterly dividend has compounded at an annualized rate of more than 8% over the past decade. That trend appears sustainable as management is guiding for 6%–8% earnings growth in the coming years, and the business operates under a fully regulated model. That structure supports steady expansion while limiting exposure to the swings seen in unregulated utility markets.

Based in Dallas, Atmos Energy Corporation (NYSE:ATO) distributes natural gas to customers across the US. Utilities often build long dividend growth records, and Atmos has followed that path with consistency.