We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
A. O. Smith Rewards Shareholders With 6% Dividend Increase
Read MoreHide Full Article
Key Takeaways
A. O. Smith raised its quarterly dividend by 6% to 36 cents per share, payable Nov. 17, 2025.
The move reflects AOS' solid financial health and commitment to enhancing shareholder returns.
AOS plans $400M in 2025 share buybacks and continues investing in acquisitions like Pureit.
In a shareholder-friendly move, A. O. Smith Corporation (AOS - Free Report) recently announced a hike in its dividend payout. The company increased its quarterly dividend by 6% to 36 cents per share (annually: $1.44). The new dividend will be paid out on Nov. 17, 2025, to shareholders of record as of Oct. 31.
The move underscores AOS’ sound financial health as it utilizes free cash flow to enhance its shareholders’ returns. The five-year compound annual growth rate of its dividend is about 7%. The company has increased its dividend consecutively for more than 30 years. Before this, it had hiked its dividend by 6% to 34 cents per share in October 2024.
Sound Capital-Allocation Strategies
Strong cash flows allow AOS to effectively deploy capital for rewarding its shareholders handsomely through dividend payments and share buybacks. In the first six months of 2025, the company paid dividends of $97.5 million, up 3.5% year over year. In the same period, it repurchased 3.8 million shares for approximately $251.3 million. While exiting the second quarter of 2025, A. O. Smith had 3 million shares remaining under its existing repurchase authorization. It is worth noting that, in January 2025, the company’s board boosted the buyback program by 5 million shares. For 2025, AOS expects to repurchase shares worth approximately $400 million.
Over the past year, the Zacks Rank #2 (Buy) company has gained 0.6% against the industry’s 1.1% decline. A. O. Smith remains focused on acquiring businesses to gain access to new customers, regions and product lines. The company’s acquisition of Pureit will enable it to strengthen its position in the water treatment industry in India. Also, AOS’ focus on cost management and operational excellence is supporting its margin performance.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies are discussed below.
CR delivered a trailing four-quarter average earnings surprise of 7.5%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 0.9%.
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 5.5%.
In the past 60 days, the consensus estimate for Flowserve’s 2025 earnings has increased 0.9%.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 4.5%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 0.2%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
A. O. Smith Rewards Shareholders With 6% Dividend Increase
Key Takeaways
In a shareholder-friendly move, A. O. Smith Corporation (AOS - Free Report) recently announced a hike in its dividend payout. The company increased its quarterly dividend by 6% to 36 cents per share (annually: $1.44). The new dividend will be paid out on Nov. 17, 2025, to shareholders of record as of Oct. 31.
The move underscores AOS’ sound financial health as it utilizes free cash flow to enhance its shareholders’ returns. The five-year compound annual growth rate of its dividend is about 7%. The company has increased its dividend consecutively for more than 30 years. Before this, it had hiked its dividend by 6% to 34 cents per share in October 2024.
Sound Capital-Allocation Strategies
Strong cash flows allow AOS to effectively deploy capital for rewarding its shareholders handsomely through dividend payments and share buybacks. In the first six months of 2025, the company paid dividends of $97.5 million, up 3.5% year over year. In the same period, it repurchased 3.8 million shares for approximately $251.3 million. While exiting the second quarter of 2025, A. O. Smith had 3 million shares remaining under its existing repurchase authorization. It is worth noting that, in January 2025, the company’s board boosted the buyback program by 5 million shares. For 2025, AOS expects to repurchase shares worth approximately $400 million.
Over the past year, the Zacks Rank #2 (Buy) company has gained 0.6% against the industry’s 1.1% decline. A. O. Smith remains focused on acquiring businesses to gain access to new customers, regions and product lines. The company’s acquisition of Pureit will enable it to strengthen its position in the water treatment industry in India. Also, AOS’ focus on cost management and operational excellence is supporting its margin performance.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies are discussed below.
Crane Company (CR - Free Report) currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CR delivered a trailing four-quarter average earnings surprise of 7.5%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 0.9%.
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 5.5%.
In the past 60 days, the consensus estimate for Flowserve’s 2025 earnings has increased 0.9%.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 4.5%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 0.2%.