A. O. Smith Corporation (NYSE:AOS) to Issue $0.36 Quarterly Dividend

Key Points

• $0.36 quarterly dividend declared (annualized $1.44) with an ex‑dividend/record date of April 30 and payment on May 15, implying a yield of about 2.1%.
• The dividend appears well covered and durable: A. O. Smith has increased its payout for 31 consecutive years and has a payout ratio around 34%, with analysts forecasting ~$4.20 EPS next year.
• Recent financial/stock snapshot: shares around $67, market cap ~$9.3B, P/E ~17.4, and the company beat Q1 EPS expectations ($0.90 vs $0.84) though revenue slightly missed estimates.

A. O. Smith Corporation (NYSE:AOS - Get Free Report) declared a quarterly dividend on Monday, April 13th. Stockholders of record on Thursday, April 30th will be paid a dividend of 0.36 per share by the industrial products company on Friday, May 15th. This represents a c) annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend is Thursday, April 30th.

A. O. Smith has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 31 years. A. O. Smith has a payout ratio of 34.4% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect A. O. Smith to earn $4.20 per share next year, which means the company should continue to be able to cover its $1.44 annual dividend with an expected future payout ratio of 34.3%.

A. O. Smith Stock Up 1.9%

Shares of NYSE AOS opened at $67.14 on Tuesday. A. O. Smith has a 12 month low of $61.35 and a 12 month high of $81.86. The company has a current ratio of 1.50, a quick ratio of 0.94 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $9.28 billion, a price-to-earnings ratio of 17.39, a PEG ratio of 1.37 and a beta of 1.35. The business has a 50-day moving average of $71.49 and a 200-day moving average of $69.60.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The industrial products company reported $0.90 EPS for the quarter, topping the consensus estimate of $0.84 by $0.06. A. O. Smith had a return on equity of 29.51% and a net margin of 14.26%.The company had revenue of $912.50 million during the quarter, compared to analyst estimates of $928.97 million. During the same quarter in the previous year, the firm earned $0.85 earnings per share. A. O. Smith's revenue was up .0% on a year-over-year basis. Sell-side analysts expect that A. O. Smith will post 3.76 earnings per share for the current fiscal year.

A. O. Smith Company Profile

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.

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