This Natural Gas Distributor Is Growing: Southwest Gas Corporation (SWX)

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This leads me to a natural gas stock also offering a generous yield, in this instance 3.7%. The company is Atmos Energy Corporation (NYSE:ATO)

Atmos’ share earnings are apt to remain rather stable. Specifically, management is targeting earnings of $2.40 to $2.50 a share this year, as compared with last year’s $2.42. It is expanding the capacity of its regulated pipeline assets and believes it can grow earnings 6% to 8% annually out to 2016. For a company that acts like a utility, this would represent meaningful bottom-line improvements.

Given that outlook, and a consistently rising dividend, ATO shares might reward investors over the 3- to 5-year span.

In sum, shares of SWX hold appreciation potential with the caveat of a turnaround in its construction division. SPH stock is for those wanting a sizable stream of income. Finally, ATO is a natural gas utility that may have some long-term price upside as well.

The article This Natural Gas Distributor Is Growing originally appeared on Fool.com and is written by Damon Churchwell.

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