Dividend Aristocrat A.O. Smith Corp announced 8.3% dividend increase for 2020

A.O. Smith dividend increase 2020
Industrial company A.O. Smith (AOS) will increase its quarterly dividend by 8.3% to $0.26 per share this year. Last year the the boiler manufacturer hiked its dividend to $0.24 per share, marking 26 consecutive years of dividend increases.

The new dividend will be paid on November 16, 2020 to AOS shareholders of record October 30, 2020. A new annual rate of $1.04 per share yields 1.8% at the current stock price. In 2018 A.O. Smith was added to the S&P500 Dividend Aristocrats Index with 25 consecutive years of dividend increases at the time. 

"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 stock price has gained 16 percent year-to-date, resulting in a current market cap of $8.9 billion for the industrial company. The A.O. Smith dividend increase follows another Dividend Aristocrat announcing a higher dividend last week, when McDonald's announced that it will raise its quarterly dividend by 3.2 percent.

A. O. Smith Corporation, with headquarters in Milwaukee, Wis., is a global leader applying innovative technology and energy-efficient solutions to products manufactured and marketed worldwide. Listed on the New York Stock Exchange (NYSE), the company is one of the world's leading manufacturers of residential and commercial water heating equipment and boilers, as well as a manufacturer of water treatment and air purification products.

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