A. O. Smith Corporation (NYSE:AOS) Declares Dividend Increase - $0.38 Per Share

Key Points

• A. O. Smith raised its quarterly dividend 5.6% to $0.38 per share, equal to $1.52 annually and a 2.7% yield. Shareholders of record on October 30 will receive payment on November 16.
• The company has increased its dividend for 31 consecutive years, with a current earnings payout ratio of 34.4%, indicating the dividend is well covered.
• A. O. Smith shares opened at $56.57, near their 52-week low, while the company’s latest quarterly results exceeded analyst expectations with EPS of $1.03 versus the $0.96 consensus estimate.

A. O. Smith Corporation (NYSE:AOS - Get Free Report) announced a quarterly dividend on Monday, October 12th. Shareholders of record on Friday, October 30th will be given a dividend of $0.38 per share by the industrial products company on Monday, November 16th. This represents a $1.52 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Friday, October 30th. This is a 5.6% increase from A. O. Smith's previous quarterly dividend of $0.36.

A. O. Smith has raised its dividend by an average of 0.1% annually over the last three years and has raised its dividend annually for the last 31 consecutive years. A. O. Smith has a payout ratio of 34.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect A. O. Smith to earn $4.06 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 35.5%.

A. O. Smith Price Performance

Shares of NYSE:AOS opened at $56.57 on Tuesday. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.59 and a quick ratio of 1.04. A. O. Smith has a 1-year low of $54.16 and a 1-year high of $81.86. The company has a market capitalization of $7.69 billion, a P/E ratio of 15.71, a P/E/G ratio of 1.26 and a beta of 1.12. The firm's 50 day simple moving average is $59.54 and its two-hundred day simple moving average is $60.42.

A. O. Smith (NYSE:AOS - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The industrial products company reported $1.03 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.07. The business had revenue of $1 billion during the quarter, compared to analyst estimates of $994.89 million. A. O. Smith had a net margin of 13.15% and a return on equity of 27.88%. The company's revenue was down .7% on a year-over-year basis. During the same period in the prior year, the business posted $1.07 earnings per share. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. Research analysts expect that A. O. Smith will post 3.74 EPS for the current fiscal year.

Hedge Funds Weigh In On A. O. Smith

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. First Trust Advisors LP lifted its stake in shares of A. O. Smith by 10.4% in the 1st quarter. First Trust Advisors LP now owns 2,168,894 shares of the industrial products company's stock valued at $143,017,000 after purchasing an additional 203,846 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of A. O. Smith by 3.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,959,696 shares of the industrial products company's stock worth $129,202,000 after purchasing an additional 64,873 shares during the period. Madison Asset Management LLC bought a new position in shares of A. O. Smith during the 2nd quarter valued at approximately $92,005,000. Bank of New York Mellon Corp increased its position in shares of A. O. Smith by 3.1% during the 1st quarter. Bank of New York Mellon Corp now owns 1,425,759 shares of the industrial products company's stock valued at $94,014,000 after purchasing an additional 42,702 shares during the last quarter. Finally, Sei Investments Co. increased its position in shares of A. O. Smith by 0.4% during the 1st quarter. Sei Investments Co. now owns 1,346,863 shares of the industrial products company's stock valued at $88,812,000 after purchasing an additional 5,175 shares during the last quarter. 76.10% of the stock is owned by institutional investors.

A. O. Smith Company Profile

A. O. Smith Corporation NYSE: AOS is a manufacturer of water heating and water treatment products for residential, commercial, and industrial applications. The company's product portfolio includes electric and gas water heaters, boilers, storage tanks, heat pump water heaters, and related equipment and controls.

The company also provides water treatment solutions, including water softeners, filtration systems, and other products designed to improve water quality. Its products are marketed under the A.

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