The Dow Jones Industrial Average has been performing better than the Nasdaq 100 lately. The “new economy” dominated by tech stocks seems to be taking a breather while the “old economy” stocks trend up. Sectors like utility, industrials, and financials are on the uptick. In fact, in March 2021, the best performing sectors were utilities, REITs, and consumer staples. If you are looking to participate in this sector rotation from new economy stocks to old economy stocks, you may want to buy utilities stocks now. Atmos Energy is not a provider of electricity. It is mainly a natural gas distributor. However, it pays a reasonable dividend and could be worth exploring.
Some Information About
Atmos Energy is the largest gas-only distributor in the US. It is headquartered in Dallas, Texas, and serves more than 1400 communities across nine states. Atmos energy manages gas storage assets and natural gas pipelines. The company’s infrastructure of pipeline systems is the largest interstate system in Texas. Atmos Energy’s origins trace back to 1906 in what is popularly known as the Panhandle of Texas. Atmos Energy was previously known as Pioneer Corporation, and it grew over the years through acquisitions. A division of Pioneer called Energas was spun off in 1983. Energas was a gas distribution company, and in 1988, it changed the official company name from Energas to Atmos Energy Corporation. The stock got listed on the NYSE and traded under the symbol ATO. Today, Atmos Energy is considered by some investors as the utilities stock to buy now.
Buy Utilities Stocks Now
Atmos Energy’s price closed at $98.24 on 1st April 2021. The stock was up 7.12% over the preceding 30 days. Over the preceding year, the stock is down 5%, which has pushed up the dividend yield slightly. Utility stocks tend to be rather recession-resistant and provide a stable dividend income stream for investors that want to have regular cash flow coming in.