Group 1 - Atmos Energy Corporation (NYSE:ATO) is recognized as one of the Dividend Growth Stocks: 25 Aristocrats [1] - BofA has lowered its price recommendation for Atmos Energy to $177 from $185, maintaining a Neutral rating, while Barclays has increased its price target to $167 from $165, keeping an Equal Weight rating [2] - The utility business model of Atmos Energy provides a high level of visibility and consistency in annual earnings due to regulatory barriers that limit new competition [3] Group 2 - Atmos Energy benefits from a steady operating model and a strong balance sheet, which supports a lower cost of capital for funding growth investments and selective acquisitions [4] - The company has demonstrated resilience during economic downturns, continuing to grow its earnings per share during the 2008 and 2009 financial crisis [4] - Atmos Energy operates as a natural gas-only distributor, serving over 3.3 million customers across more than 1,400 communities in eight states, primarily in the southern US [5]

Core Viewpoint - New Jersey Resources Corporation (NJR) reported strong financial performance in the first quarter of fiscal 2026, raising its net financial earnings per share (NFEPS) guidance due to favorable conditions in its Energy Services segment [4][5]. Financial Highlights - Fiscal 2026 first-quarter consolidated net income was $122.5 million, or $1.22 per share, compared to $131.3 million, or $1.32 per share, in the same period of fiscal 2025 [7][8]. - Fiscal 2026 first-quarter consolidated net financial earnings (NFE) were $118.2 million, or $1.17 per share, down from $128.9 million, or $1.29 per share, in the first quarter of fiscal 2025 [7][8]. - The decrease in NFE was primarily due to a prior-year gain on the sale of Clean Energy Ventures' residential solar portfolio assets, partially offset by higher NFE from New Jersey Natural Gas, Storage and Transportation, and Energy Services [7][8]. Fiscal 2026 Outlook - NJR raised its fiscal 2026 NFEPS guidance range by $0.25 to $3.28 to $3.43, marking the sixth consecutive year of guidance increases [4][5]. - The expected contributions to NFE from business segments for fiscal 2026 are as follows: New Jersey Natural Gas (62-67%), Clean Energy Ventures (9-14%), Storage and Transportation (7-12%), Energy Services (12-17%), and Home Services and Other (1-2%) [5]. Business Segment Performance - New Jersey Natural Gas reported NFE of $83.8 million, up from $66.9 million in the same period last year, driven by a base rate case settlement [10]. - Clean Energy Ventures reported NFE of $9.6 million, down from $48.1 million, primarily due to a one-time gain recognized in the prior year [13]. - Storage and Transportation reported NFE of $7.4 million, an increase from $5.7 million, attributed to higher operating income from the Adelphia Gateway [14]. - Energy Services reported NFE of $16.3 million, up from $7.8 million, due to increased natural gas price volatility [15]. - Home Services and Other Operations reported NFE of $0.5 million, slightly down from $0.6 million [16]. Capital Expenditures and Cash Flows - Capital expenditures for the first quarter were $163.6 million, compared to $149.6 million in the same period last year, mainly due to higher spending at NJNG and CEV [21]. - NJR expects to deploy between $4.8 billion and $5.2 billion in capital expenditures through 2030, with over 60% allocated to utility spending at NJNG [21]. - Cash flows from operations increased to $26.7 million, compared to cash flows used in operations of $9.0 million in the same period last year, primarily due to increased base rates at NJNG [21].

Core Viewpoint - Spire is focusing on strategic growth through the acquisition of Duke Energy's Piedmont Natural Gas Tennessee business, which is expected to enhance its utility footprint and diversify its portfolio, with the transaction anticipated to close in early 2026 [1][7]. Financial Performance - For fiscal 2025, Spire reported adjusted earnings of $4.45 per share and approved a 5.1% increase in the annual dividend, raising it to $3.30 per share, marking the 23rd consecutive year of dividend hikes [4][6][14]. - The company invested $922 million in fiscal 2025, with nearly 90% allocated to utilities, and achieved a regulatory revenue increase of $210 million due to a rate case in Missouri [5][13]. Leadership Changes - Scott Doyle was appointed as president and CEO on April 24, 2025, and Steve Greenley joined as COO on October 13, 2025, indicating a significant leadership transition [3][4]. Regulatory Developments - The Missouri Legislature passed Senate Bill 4 in April 2025, modernizing regulatory rate-setting mechanisms, while the Missouri Public Service Commission approved a stipulation agreement resulting in a $210 million revenue increase [10][11]. - In Alabama, Spire concluded its annual budget process and worked with stakeholders through the Rate Stabilization and Equalization process, with new rates effective in early December [12]. Future Outlook - Management's priorities for fiscal 2026 include ensuring safe and reliable service, executing the capital plan efficiently, maintaining customer affordability, achieving constructive regulatory outcomes, and successfully integrating the Tennessee acquisition [15].

Core Insights - Piedmont Natural Gas is providing resources and assistance programs to help customers manage energy bills during colder temperatures in the Southeast [1] Energy Management Tools - Piedmont offers an Equal Payment Plan (EPP) that allows customers to pay a predictable monthly amount based on their annual natural gas usage, helping to avoid billing surprises [3] - Customers can access their gas usage history online to identify trends and potential savings opportunities [8] Financial Assistance Programs - The Share the Warmth program provides funds to local agencies to assist families with utility bills, regardless of the energy source [4] - The Low Income Home Energy Assistance Program (LIHEAP) offers financial assistance for natural gas, electric, and other energy sources used in homes [4][5] Energy-Saving Tips - Recommendations include setting thermostats to lower settings, using smart thermostats, and managing water heater temperatures [8] - Customers are advised to seal their homes and regularly change air filters to improve energy efficiency [8]

Group 1 - MDU Resources Group, Inc. will host a year-end 2025 earnings conference call on February 5, 2026, at 2 p.m. ET, with results released before U.S. markets open that day [1] - The webcast will be accessible on the company's website under the "Investors" section, specifically in "Events & Presentations" [1] - A replay of the webcast will be available after the live event at the same location [1] Group 2 - MDU Resources Group Inc. is part of the S&P SmallCap 600 index and provides electric utility and natural gas distribution services to over 1.2 million customers in the Pacific Northwest and Midwest [2] - The company operates a natural gas pipeline network exceeding 3,800 miles, ensuring reliable energy delivery across the Northern Plains [2] - MDU Resources has a legacy of over a century and focuses on delivering safe, reliable, cost-effective, and environmentally responsible energy solutions [2]

Core Insights - The investment landscape in 2026 is influenced by themes from 2025, including AI optimism, Federal Reserve policies, geopolitical tensions, and tariff risks [1] Sales Growth as an Indicator - Sales growth is a reliable metric for evaluating stocks, reflecting actual demand and underlying company momentum, unlike earnings which can be influenced by accounting practices [3] - Consistent sales growth indicates potential market share expansion and successful entry into new markets, serving as an early indicator of earnings upside and long-term value creation [3] Contextual Analysis of Sales Performance - Sales performance should be contextualized against peers, industry trends, and economic conditions to identify companies with durable growth and competitive advantages [4] - Durable growth supports predictable cash flows, allowing management to reinvest and maintain balance sheet strength without excessive debt [4] Stock Selection Criteria - Stocks are shortlisted based on criteria including 5-Year Historical Sales Growth greater than industry average and Cash Flow exceeding $500 million [5] - Additional metrics include a Price/Sales (P/S) Ratio lower than industry average, positive changes in sales estimate revisions, operating margins above 5%, and Return on Equity (ROE) greater than 5% [6][7][8] Highlighted Stocks for 2026 - MKS Inc. (MKSI), Ameren Corporation (AEE), and ONE Gas, Inc. (OGS) are identified for their robust sales growth and strong financial fundamentals [10] - MKSI expects a sales growth of 6.9% in 2026, AEE projects 7.2%, and OGS forecasts a 5% increase, all while maintaining high cash flow and solid operating margins [10][11][12][13]

Core Viewpoint - Atmos Energy Corporation will host a conference call on February 4, 2026, to discuss its Fiscal 2026 first quarter financial results, which will be released on February 3, 2026, after market close [1]. Company Overview - Atmos Energy Corporation is a natural gas-only distributor and an S&P 500 company headquartered in Dallas, serving approximately 3.4 million distribution customers across over 1,400 communities in eight states, primarily in the South [3]. - The company focuses on delivering reliable, affordable, efficient, and abundant natural gas while investing in safety, innovation, environmental sustainability, and community development [3]. - Atmos Energy manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas [3]. Conference Call Details - The conference call is scheduled for February 4, 2026, at 9 a.m. Eastern / 8 a.m. Central [3]. - Participants can join the call by dialing the toll-free number 800-715-9871 or the international number +1 646-307-1963, using Conference ID: 15904 [2][3]. - The call will also be available via an Internet webcast on the Atmos Energy website, which will be archived for 30 days [2].

Core Viewpoint - New Jersey Resources Corporation (NYSE:NJR) is identified as a promising investment in the hydrogen and fuel cell sector for 2026, with a recent upgrade from Mizuho indicating strong fundamentals and attractive valuation [1]. Financial Performance - NJR reported mixed financial results for the fiscal fourth quarter of 2025, with earnings per share of $0.16, falling short of the expected $0.19, resulting in a 15.79% negative surprise [3]. - The company exceeded revenue expectations, reporting $336.08 million compared to the anticipated $307.19 million [3]. Market Position and Outlook - Mizuho upgraded NJR from Neutral to Outperform, raising its price target to $54 from $51, citing a 23% discount relative to its local distribution peer group based on 2028 consensus expectations [1]. - NJR is considered largely insulated from regulatory challenges affecting other local power companies, which are facing scrutiny regarding affordability [2]. - Positive growth outlooks are noted for NJR's S&T and CEV divisions, with the CEV division expected to benefit from in-state generation requirements [2]. Company Overview - New Jersey Resources Corporation is a diversified energy holding company that provides regulated natural gas distribution, transmission, and storage services, along with unregulated clean energy operations [4].

Core Insights - The article discusses the significance of dividend-paying stocks in generating long-term returns and stability in the market, highlighting the performance of various categories of dividend stocks from 1973 to 2022 [1][2][4]. Dividend Performance - Dividend-paying companies achieved an average annual return of 9.18%, while non-dividend payers lagged at 3.95%. Companies that consistently raised dividends performed even better with a return of 10.24%, while those maintaining dividends saw 6.60% returns. The worst performers were companies that cut dividends, which had a -0.60% annual return [2]. Volatility Analysis - Non-dividend-paying stocks exhibited a beta of 1.18, indicating higher volatility compared to the market, while dividend-paying stocks had a beta of 0.94, suggesting steadier performance with fewer extreme price swings [3]. Investment Strategy - The article emphasizes the importance of investing in companies with a consistent history of dividend payments, as these firms are often more stable and resilient during economic downturns [4][6]. Realty Income Corporation - Realty Income Corporation (NYSE:O) is highlighted as a top dividend stock, with a dividend yield of 5.72% and 27 hedge fund holders as of December 28. Morgan Stanley recently raised its price target for the company to $65 from $62 [9][10]. - The company operates by acquiring single-tenant commercial properties and leasing them under triple-net leases, which helps maintain steady cash flow and reliable monthly dividends [10][11]. - Realty Income has a strong track record, having paid 666 consecutive monthly dividends and raised its dividend 133 times since its NYSE listing in 1994 [13]. National Fuel Gas Company - National Fuel Gas Company (NYSE:NFG) is another notable dividend stock, with a dividend yield of 2.64% and 32 hedge fund holders as of December 28. JPMorgan recently raised its price target for the company to $96 from $95 [15][16]. - The company is set to acquire CenterPoint Energy's Ohio natural gas utility business for $2.62 billion, which will significantly expand its regulated footprint and double its gas utility rate base [18][19]. - This acquisition is expected to enhance National Fuel's cash flows and reinforce its investment-grade balance sheet, as it serves a large customer base across Western New York and Northwestern Pennsylvania [20].

Economic Overview - Consumer confidence in the United States fell to 89.1 in December, a decline of 3.8 points from November's 92.9, indicating growing concerns over jobs and income amid a weakening economy [4][10] - The Present Situation Index dropped 9.5 points to 116.8, reflecting a negative assessment of current business and labor market conditions [4] - The Expectations Index remained unchanged at 70.7, staying below the 80 mark for 11 consecutive months, which signals a potential recession [5] Federal Reserve Actions - The Federal Reserve cut interest rates by 25 basis points three times in the current year but indicated only one rate cut for the next year due to persistent high inflation [5][6] Market Trends - A significant tech selloff has occurred, with investors offloading tech stocks due to concerns over profitability against high valuations, leading to a loss of momentum in the tech rally [6][10] Investment Recommendations - Investors are advised to focus on low-beta, defensive stocks from the utility and consumer staples sectors to mitigate market volatility [2][10] - Recommended stocks include: - **Atmos Energy Corporation (ATO)**: Expected earnings growth rate of 6.7%, beta of 0.75, and a dividend yield of 2.38% [8][7] - **American States Water Company (AWR)**: Expected earnings growth rate of 5.1%, beta of 0.70, and a dividend yield of 2.76% [12][11] - **Sempra (SRE)**: Expected earnings growth rate of 12.1%, beta of 0.73, and a dividend yield of 2.91% [13] - **Ingredion Incorporated (INGR)**: Expected earnings growth rate of 1.6%, beta of 0.72, and a dividend yield of 2.94% [14]