What Makes Atmos Energy Corporation (ATO) a Solid Pick for a Buy and Hold Portfolio

Atmos Energy Corporation (NYSE:ATO) is included among the 10 Best Dividend Stocks to Buy and Hold Forever.

What Makes Atmos Energy Corporation (ATO) a Solid Pick for a Buy and Hold Portfolio

A close up of a regulator valve being connected to a pipeline.

The Texas-based natural gas distribution company focuses on providing safe and reliable natural gas services and invests heavily in infrastructure upgrades and safety programs.

In its fiscal Q2 2025 earnings, Atmos Energy Corporation (NYSE:ATO) highlighted that as part of its regulatory strategy, the company had implemented $153.2 million in regulatory initiatives by May 7, 2025, or $154.0 million when adjusted for excess deferred tax amortization. An additional $389.1 million worth of initiatives is currently underway. The company maintains a strong balance sheet, supported by approximately $5.3 billion in available liquidity and $1.0 billion in financing to sustain operations. It also 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%.

Due to its solid balance sheet, Atmos Energy Corporation (NYSE:ATO) has grown its dividends for 41 consecutive years. The company currently pays a quarterly dividend of $0.87 per share and has a dividend yield of 2.23%, as of July 31.

While we acknowledge the potential of ATO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ATO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.