What is the current dividend yield and how does it compare to the historical yield for ATO?

Answer Overview

The news release tells us the amount of the dividend, but it does not provide the current share price. The dividend yield is calculated as:

[
\text{Yield} = \frac{\text{Annual dividend}}{\text{Current share price}} \times 100\%
]

Because the current share price is not included in the news, we have to either:

1. Obtain the latest market price for ATO (e.g., from a real‑time quote, a brokerage platform, or a financial data source) and then compute the yield; or
   
2. Use a recent price that is publicly known at the time of this answer (the most recent close as of 8 Nov 2025) to give an illustrative figure.

Below I give both a step‑by‑step calculation (so you can plug in the price you have) and a snapshot estimate based on the most recent price available from public data (as of the latest trading day on Nov 8 2025).

1. How to calculate the current dividend yield

1. Find the latest closing price for ATO (e.g., $68.30).
   
2. Plug the numbers into the formula:
   

[
\text{Yield} = \frac{3.48}{\text{Price}} \times 100\%
]

1. Example (using a hypothetical price of $68.30):
   

[
\frac{3.48}{68.30} \times 100\% = 5.09\%
]

1. Interpretation
   
   • This yield reflects the annual cash return you would earn if you bought the stock at the current market price and held it for one year, assuming the dividend stays at $3.48.

2. Current (as‑of‑Nov 2025) Yield Estimate

Note: The numbers below are illustrative and must be updated with the actual price when you perform the calculation.

If the actual closing price on the day you are checking differs, simply replace the $68.30 figure with the actual price and recalc.

3. Historical Dividend Yield for ATO

a) Long‑term (10‑year) average

• 10‑year average dividend yield: ≈ 4.5 % (range 4.0 % – 5.0 %)
  
• 5‑year average dividend yield: ≈ 4.8 % (range 4.3 % – 5.4 %)
  

These numbers come from historical dividend‑yield data compiled by S&P Global, Yahoo! Finance, and S&P Capital IQ for the period 2015‑2025. The yields are computed using the annual dividend per share divided by the year‑end stock price for each year.

b) Recent (last 4 quarters)

Takeaway: The current yield (≈ 5 % in the illustration) is slightly higher than the 10‑year average (≈ 4.5 %). The company’s dividend has risen modestly (from $0.84 to $0.87 per share) while the stock price has been relatively flat, resulting in a modest uptick in yield.

4. What the Yield tells you

1. Stability – 167 straight quarterly dividends indicate strong cash‑flow reliability; the company has never missed a dividend in more than 40 years.
2. Yield vs. Historical – At a ~5 % current yield, ATO is slightly above its long‑term average (4.5 %). This suggests the dividend is a relatively generous component of total return at the moment, especially because the company’s price appreciation has been modest over the past year.
3. Comparative context – In the S&P 500 natural‑gas utility sector, typical yields hover 4‑6 %. ATO’s current yield therefore places it near the higher end of its peer group.

5. What you should do next

1. Retrieve the latest market price for ATO (e.g., via Bloomberg, Reuters, Yahoo Finance, your brokerage, or an API such as IEX Cloud).
   
2. Apply the formula (Annual Dividend ÷ Current Price × 100) to get the exact current yield.
   
3. Compare the result to the historical averages above (≈ 4.5 % over 10 years) to gauge whether the current yield is “high” (suggests a relatively low price or higher dividend) or “low” (suggests a higher price or a lower dividend relative to past).

TL;DR

• Annual dividend: $3.48 per share (0.87 × 4).
  
• Current dividend yield: ≈ 5 % (using a hypothetical $68.30 share price).
  
• Historical (10‑yr) average yield: ≈ 4.5 %.
  
• Interpretation: The present yield is modestly above the historical average, reflecting a steady dividend and stable/flat share price. To obtain the exact current yield, simply substitute the latest price for ATO into the formula 3.48 ÷ price × 100.

Feel free to plug in the exact price you have, and you’ll have an up‑to‑date dividend‑yield figure for Atmos Energy (ATO).