How A. O. Smith Delivers Dividend Stability in the Industrial Sector

A. O. Smith Corporation (NYSE:AOS) is included among the 13 Best Industrial Dividend Stocks to Buy Right Now.

A man in overalls soldering a large water heater inside a manufacturing facility.

The company runs a capital-efficient, high-return business centered around the established and stable North American water heater market, where about 80–85% of demand comes from replacements. In this core market, it holds strong pricing power due to limited competition and gains added strength from a hybrid distribution model that provides both consistency and broad market access.

On July 8, A. O. Smith Corporation (NYSE:AOS) declared a quarterly dividend of $0.34 per share, which was consistent with its previous dividend. The company’s dividend policy has remained stable over the years, as it has raised its payouts for 32 consecutive years. In addition, it has paid uninterrupted dividends to shareholders for 85 years in a row. As of July 13, the stock has a dividend yield of 1.97%.

A. O. Smith Corporation (NYSE:AOS)’s cash position was solid, which helped the company distribute dividends smoothly over the years. In the most recent quarter, the company reported an operating cash flow of $38.7 million, and its free cash flow came in at $17.4 million.

The company runs a capital-efficient, high-return business centered around the established and stable North American water heater market, where about 80–85% of demand comes from replacements. In this core market, it holds strong pricing power due to limited competition and gains added strength from a hybrid distribution model that provides both consistency and broad market access.

On July 8, A. O. Smith Corporation (NYSE:AOS) declared a quarterly dividend of $0.34 per share, which was consistent with its previous dividend. The company’s dividend policy has remained stable over the years, as it has raised its payouts for 32 consecutive years. In addition, it has paid uninterrupted dividends to shareholders for 85 years in a row. As of July 13, the stock has a dividend yield of 1.97%.

A. O. Smith Corporation (NYSE:AOS)’s cash position was solid, which helped the company distribute dividends smoothly over the years. In the most recent quarter, the company reported an operating cash flow of $38.7 million, and its free cash flow came in at $17.4 million.

READ NEXT: 11 Best Dividend Aristocrat Stocks to Invest in Now and 10 Best Stocks to Buy For Dividends.

Disclosure: None.