AOS raises its quarterly dividend 6% to 38 cents per share, backed by strong cash flows and a solid history of shareholder returns through buybacks.
In this monthly series, I rank a selection of dividend growth stocks and present the top 10 stocks for consideration. This month's screen targets dividend growth stocks with Dividend Safety scores ≥8.0, forward yields ≥2.5%, and prices at or below fair value. An equally weighted portfolio of the top 10 stocks yields 2.8% but would have underperformed SPY over the past 5 years.
AOS' North America boiler strength, acquisitions and shareholder returns support growth despite China weakness and rising debt.
A. O. Smith is rated Buy due to resilient replacement demand, energy-efficiency tailwinds, and an attractive valuation. Approximately 80-85% of North American water heater demand is replacement-driven, providing downside protection and medium-term growth potential. Earnings are expected to recover from Q4 2026, driven by pricing realization, cost savings, and a favorable product mix shift.
AOS benefits from strong North America boiler demand, acquisitions and shareholder returns, though China weakness and rising costs pose challenges.
Industrial dividend growers rarely make headlines the way REITs or telecoms do, yet they quietly compound income year after year through cycles most investors ignore.
A. O. Smith Corporation (AOS) Q2 2026 Earnings Call Transcript
AOS beats Q2 earnings and sales estimates, boosted by North America strength, while higher input costs and weaker China demand pressured profitability.
While the top- and bottom-line numbers for A.O. Smith (AOS) give a sense of how the business performed in the quarter ended June 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
A.O. Smith (AOS) came out with quarterly earnings of $1.03 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $1.07 per share a year ago.
A.O. Smith (AOS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
AOS, ARIS and BMRC have been added to the Zacks Rank #5 (Strong Sell) List on June 18, 2026.