A. O. Smith Corporation

AOS
IndustrialsDividend Aristocrat
$55.28
2.60%Undervalued

A. O. Smith Corporation (AOS) is a Industrials company that currently yields 2.60% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $64.88 and the overvaluation threshold at $125.81. A. O. Smith Corporation holds a quality score of 90/100 (Excellent), reflecting 25 consecutive years of dividend growth with a 40% payout ratio. The 5-year dividend CAGR stands at 7.1%.

AOS Dividend Yield History — Weiss Valuation

Underval. $64.88Overval. $125.81

Distance to undervalued

In undervalued territory

Price sits 14.8% below the Weiss buy zone ceiling

The current yield already clears the historical undervaluation threshold. The next question is whether the dividend quality and payout profile deserve that higher yield.

Zone ceiling

$64.88

Current yield

2.60%

Research checklist

What to clear before buying the yield

Updated Oct 8, 2026

Dividend durability

25Y

Long dividend history supports a deeper look.

Earnings payout

40%

Earnings coverage leaves room for noise.

Cash payout

33%

Free cash flow coverage supports the payment.

Dividend growth

7.1%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-10-07 → 2026-10-08

Price

-1.5%

$56.12 → $55.28

Price fell 1.5% since the prior snapshot.

Why Now?

A. O. Smith Corporation is trading near its historical undervaluation band.

Current yield 2.6% vs historical max 2.2% (119% of maximum).

14 consecutive years without a dividend cut.

Conservative payout ratio of 40%.

What matters now

Read the signal before the headline yield

Valuation is the invitation here: the yield is elevated versus its own history.

The 90/100 quality score keeps AOS on the serious-research list.

Start by checking whether payout coverage and business durability still support the dividend.

AOS Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$279

Year 10 Income

$719

Yield on Cost

7.56%

Total Income

$4,618

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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Dividend income log · Yield on cost · DRIP cost basis · Tax reports

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More research

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AOS Dividend Quality Score

Quality Score

90/ 100

Excellent

Payout Ratio25/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History15/15
FCF Coverage15/15

Key Metrics

Current Price$55.28
Annual Dividend$1.44
Current Yield2.60%
Yield — Max (10Y)2.18%
Yield — Min (10Y)1.14%
Undervalued Below$64.88
Overvalued Above$125.81
Payout Ratio39.55%
CAGR Dividend 5Y7.1%
CAGR Dividend 10Y13.8%
Years No Cut14y
Historically elevated yield

AOS has an undervalued Weiss signal. Review the risks and current trading costs before acting.

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25
consecutive years of dividend growth