A. O. Smith dividend
MyStockButler's November 2026 analysis: A. O. Smith raised its quarterly dividend 6% to $0.38. A. O. Smith's shareholder payments exceeded free cash flow across 2021–2025, so cash coverage was strained.
How much does A. O. Smith pay per share?
Dividends remain $1.52 per share in the base case in 2027, then rise to $1.61 and $1.71. The bear case holds at $1.52 before cutting to $1.37. The bull case rises to $1.60, $1.70 and $1.81. The base follows five years of increases and the latest 6% raise, while the bear reflects distributions that have exceeded free cash flow and higher debt.
| November 2027 | November 2028 | November 2029 | |
|---|---|---|---|
| Dividends per share | 1.52 (1.52 / 1.60) | 1.61 (1.52 / 1.70) | 1.71 (1.37 / 1.81) |
How much would A. O. Smith's dividend pay you?
$10,000 invested in A. O. Smith at its 2.4% dividend yield (our report of November 1, 2026) pays $240.00 in the first year, before tax. If its dividend per share keeps changing 7.1% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays $589.47, with $3,869.38 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Does A. O. Smith's dividend fit its cash flow?
A. O. Smith returned more cash to shareholders than it generated after capital spending, which reduced its financial cushion. Free cash flow means the cash left after operating the business and buying or maintaining equipment. Dividends and buybacks use that cash afterward, so paying shareholders can weaken the company even when operations generate cash.
The pattern continued in 2026. The board added 5 million shares to repurchase authority, and management expected about $300 million of buybacks. It also raised the quarterly dividend 6% to $0.38 and said it would prioritize buybacks with after-tax China-sale proceeds and cash recovered from China.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 546.0 | 473.8 | 597.7 | 321.1 | 566.0 |
| − Dividends paid | 195.7 | 190.4 | 183.5 | 177.2 | 170.1 |
| − Share buybacks | 400.8 | 305.8 | 306.5 | 403.5 | 366.5 |
| = Free cash flow not paid out | 107.7 | 29.4 | |||
| Paid out, % of free cash flow | 109.2% | 104.7% | 82.0% | 180.8% | 94.8% |
What this means. In 2025, the company paid shareholders more than the cash it made, so it had to use savings or borrow money to cover the difference.
What could change A. O. Smith's dividend?
Management guides to $3.27 billion–$3.29 billion of 2026 sales excluding China. Adjusted EPS is $3.42–$3.52, and free cash flow is $525–$575 million. Its record is mixed: promises kept were 3/5.
The first bear signal would be late-2026 pricing that fails to cover steel and freight inflation as residential volumes soften. That would lower revenue growth, margins and earnings through 2029.
What is A. O. Smith's dividend yield at today's price?
| Today (Nov 1, 2026) | |
|---|---|
| Share price | 63.07 |
| Dividend yield (calculated) | 2.4% |
What this means. Enterprise value is higher than market value because it includes debt and subtracts cash, so it estimates the cost of buying the whole business.