ATO dividend analysis

ATO dividend deep dive

Income read on ATO: trailing yield 2.50%, payout ratio 35%, 5y CAGR 5.5%, 10y CAGR 9.5%. The growth streak runs 26 years.

ATO dividend-safety read: 46/100. The score is the Quality pillar (40/100) penalized for high payout — at 35% of earnings, that adjustment pulls the headline flat or up from raw Quality.

ATO DRIP table at flat yield + growth: 5y ≈ 13.9%, 10y ≈ 29.7%, 20y ≈ 68.3% cumulative income return on the 2.50% starting yield. Useful as a back-of-envelope only — assumes the yield stays at TTM and the growth rate persists.

ATO sits in a peer group of KO (5.00%), PG (1.50%), PEP (2.90%), with the trio yielding a mean of 3.13%. The 2.50% yield on ATO is the cleanest single-number comparison; payout ratio and growth rate are the two follow-ups.

Ex-dividend cadence on ATO: most recent ex-date 2026-03-01, payment 2026-03-15. Quarterly schedules are the norm for US payers; the ex-date is the cutoff for entitlement to the upcoming distribution, while the payment date is when cash hits the brokerage.

Income thesis line for ATO: starting yield of 2.50%, projected growth of 5.5%, safety read 46/100. The forward open question is the durability of the next dividend hike given the 35% earnings payout.