A.O. Smith hikes dividend by 7.1%
On October 13, 2022, Dividend Aristocrat A.O. Smith Corporation (AOS) declared a new quarterly dividend of 30 cents per share, up 7.1% from the previous quarterly dividend by the boiler and water products maker. A.O. Smith has now raised the dividend 29 straight years.
The dividend is payable on November 15 to shareholders of record October 31, 2022. A new annual rate of $1.20 per share for AOS yields 1.5% at a stock price of $49. The new annual dividend payment will jump to $187 million for AOS. The average 5 year dividend growth rate for AOS drops from 18.5 percent to 16.5 percent annually if we include this latest hike.
"This dividend increase reflects our confidence in the stability in our replacement demand inherent in our water heating and boiler businesses, as well as our focus on returning capital to shareholders," said Kevin J. 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 15%, and that we have increased our dividend each year for over 25 years."
A. O. Smith Corporation is manufacturer of residential and commercial water heating equipment and boilers, as well as a manufacturer of water treatment products for residential and light commercial applications. In North America, A.O. Smith also manufactures expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, related products and parts. The company is headquartered in Milwaukee, WI, and has operations in the U.S., Canada, China, India, Mexico, the Netherlands, Turkey, the United Kingdom and Vietnam. A. O. Smith Corporation has paid cash dividends on its common stock every year since 1940.
