AOS - Here's Why A. O. Smith Is a No-Brainer Dividend Growth Stock
2023-04-22 05:02:00 ET
You can sum up the investment thesis for A. O. Smith (NYSE: AOS) very easily -- everyone wants hot water if they can get it. But this industrial's growth isn't coming from developed markets, where replacement of broken water heaters is the driver. It is coming from emerging markets where consumers are moving up the socioeconomic ladder and getting hot water for the first time. China was the big historical driver, and India is expected to support the next growth leg. Investors looking for dividend growth will like what they see here -- just examine the charts below.
Dividend growth is usually measured in two ways: the size of the increase and the length of time a dividend has been increased. A. O. Smith excels on both accounts. To start, the industrial company has increased its dividend annually for an incredible 30 consecutive years. You don't build a record like that by accident. It's perhaps even more impressive because the company operates in a cyclical industry. Simply put, the board has shown a huge commitment to returning value to shareholders via a growing dividend.
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Here's Why A. O. Smith Is a No-Brainer Dividend Growth Stock