A.O. Smith | Dividend increase +7.7% to $0.28 quarterly per share in 2021

A.O. Smith has raised its dividend 28 years in a row

Dividend Aristocrat A.O. Smith Corporation will raise its quarterly dividend by 7.7 percent to $0.28 per share in 2021, marking 28 consecutive years of dividend increases.

Last year the provider of water heating and water treatment solutions announced a dividend hike of 8.3 percent, marking 27 years of dividend increases in a row. AOS is a Dividend Aristocrat.

The next AOS dividend of $0.28 per share is payable on November 15 to shareholders of record October 29. The new dividend yield for A.O. Smith Corporation is 1.8% at a stock price of $64.16. 

"Our dividend increase today reflects our confidence in the large, stable replacement demand inherent in our water heating business, as well as our focus on returning capital to shareholders," said Kevin Wheeler, chairman and chief executive officer. "We are proud to say the five-year compound annual growth rate of our dividend rate is more than 17 percent, and that we have increased our dividend each year for over 25 years." source: A.O. Smith Corporation press release October 11, 2021

For A.O. Smith this new dividend hike is the smallest since 2010 when the industrial company also announced a dividend hike of 7.7 percent. The average dividend growth rate in the last five years is 18.5 percent annually. This makes AOS one of the best dividend growth stocks amongst all Aristocrats. However dividend growth has been slowing the last three years with the latest double digit dividend hike dating back to 2018, when A.O. Smith boosted its payment by no less than 57.1 percent.

A. O. Smith Corporation, with headquarters in Milwaukee, Wis., is a global leader applying innovative technology and energy-efficient solutions to products manufactured and marketed worldwide. Listed on the New York Stock Exchange (NYSE), the company is one of the world's leading manufacturers of residential and commercial water heating equipment and boilers, as well as a manufacturer of water treatment and air purification products. The A.O. Smith Lochinvar brand is a residential and commercial boiler brands in the United States. It sells its Aquasana branded products directly to consumers through e-commerce as well as on-line retailers. The AOS water softener branded products and problem well water solutions include Hague, WaterBoss, Water-Right, WaterCare, and Evolve.