Dividend Aristocrat A.O. Smith Corporation (AOS) will raise its quarterly dividend by 8.3 percent to 26 cents per share in 2020. This follows a 9.1 percent increases announced by the boiler manufacturer to $0.24 per share in 2019. In 2018 AOS hiked its dividend twice for a total increase of 57.1 percent, resulting in a current 5 year average dividend growth rate of 22.3 percent.

The next dividend will be payable on November 16, 2020 to shareholders of record October 30, 2020. A new annual rate of $1.04 per share yields 1.8% at a stock price of $56.49.

In the company's press release dated October 12, 2020 the company announces the dividend hike inclusing a comment from the CEO: "A. O. Smith values its shareholders and works hard to ensure they are rewarded for investing in our company," 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 22 percent."

A.O. Smith has now raised its dividend for 27 consecutive years and will pay an estimated $168 million in dividends to shareholders annually. The company is a Dividend Aristocrat, being included in the S&P500 Dividend Aristocrats Index.

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.