ATO Dividend

Although ATO has a dividend of 0.87 with an ex-dividend date of Aug 25, you can sell covered calls on Atmos Energy Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:10 AM ET):

Atmos Energy Corporation (ATO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
167.01	167.38	167.19	+1.38	79K	23	27B

ATO Dividend-Like Income Using Covered Calls

With ATO at 167.19, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield	Annual Premium	Cents/Day
3%	5.02	1.4
5%	8.36	2.3
10%	16.72	4.6

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On ATO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	170.00	2.25	59	3.8	2.62 (1.6%)
Dec 19	170.00	3.90	122	3.2	2.62 (1.6%)

5% Yield On ATO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	170.00	2.25	59	3.8	2.62 (1.6%)
Dec 19	170.00	3.90	122	3.2	2.62 (1.6%)

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Want more examples? ATNM Dividend | ATOM Dividend