Dividend Growth Stocks: 25 Aristocrats

11. Atmos Energy Corporation (NYSE:ATO)

5-Year Average Dividend Growth Rate: 8.97%

BofA lowered its price recommendation on Atmos Energy Corporation (NYSE:ATO) to $177 from $185 on January 30. The firm kept a Neutral rating after updating its EPS estimates for fiscal 2026 through 2028. A few days earlier, on January 27, Barclays nudged its price target higher to $167 from $165 while maintaining an Equal Weight rating on the stock.

Atmos Energy’s main advantage comes from the nature of the utility business itself. Natural gas service is essential, and the industry is heavily regulated. Those regulatory barriers make it extremely difficult for new competitors to enter the market. For Atmos, that structure brings a high level of visibility and consistency in annual earnings.

The company also benefits from a steady operating model and a strong balance sheet. That combination supports a lower cost of capital, which helps fund growth investments and selective acquisitions that add to earnings over time.

Utilities tend to hold up well during economic slowdowns, and Atmos has shown that in practice. During the 2008 and 2009 downturn, when many companies saw sharp drops in earnings, Atmos Energy continued to grow its earnings per share.

Atmos Energy Corporation (NYSE:ATO) operates as a natural gas-only distributor, serving more than 3.3 million customers across over 1,400 communities in eight states, primarily in the southern US.