Atmos Energy Corporation

ATO
UtilitiesDividend Aristocrat
$166.85
2.09%Overvalued

Atmos Energy Corporation (ATO) is a Utilities company that currently yields 2.09% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $121.25 and the overvaluation threshold at $164.67. Atmos Energy Corporation holds a quality score of 28/100 (Risky), reflecting 25 consecutive years of dividend growth with a 46% payout ratio. The 5-year dividend CAGR stands at 2.1%.

ATO Dividend Yield History — Weiss Valuation

Underval. $121.25Overval. $164.67

Distance to undervalued

Entry price is stretched

Needs 27.3% downside to reach the Weiss buy zone

Undervaluation starts near $121.25, where the annual dividend would imply roughly 2.87% yield. That is 0.78% above today's yield.

Buy-zone price

$121.25

Target yield

2.87%

Research checklist

What to clear before buying the yield

Updated Aug 23, 2026

Dividend durability

25Y

Long dividend history supports a deeper look.

Earnings payout

46%

Earnings coverage leaves room for noise.

Cash payout

N/A

Confirm cash conversion and one-off effects.

Dividend growth

2.1%

Lower growth changes the return trade-off.

What changed

What changed since the last update

2026-08-222026-08-23

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Atmos Energy Corporation is trading near its historical overvaluation band.

Current yield 2.1% vs historical max 5.4% (39% of maximum).

Recent dividend history shows no sustained growth streak.

Conservative payout ratio of 46%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 28/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

ATO Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$213

Year 10 Income

$316

Yield on Cost

3.24%

Total Income

$2,605

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

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Moat rating & analyst fair value

Morningstar ↗

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ATO Dividend Quality Score

Quality Score

28/ 100

Risky

Payout Ratio20/25
Dividend Streak0/25
Growth (CAGR 5Y)8/20
Yield vs History0/15
FCF Coverage0/15

Key Metrics

Current Price$166.85
Annual Dividend$3.48
Current Yield2.09%
Yield — Max (10Y)5.39%
Yield — Min (10Y)2.22%
Undervalued Below$121.25
Overvalued Above$164.67
Payout Ratio46.13%
CAGR Dividend 5Y2.1%
CAGR Dividend 10Y5.1%
Years No Cut

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25
consecutive years of dividend growth