Uncovering Dividend Opportunities with NYSE:AOS.

Last update: Jan 30, 2025

Consider SMITH (A.O.) CORP (NYSE:AOS) as a top pick for dividend investors, identified by our stock screening tool. NYSE:AOS shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Unpacking NYSE:AOS's Dividend Rating

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:AOS has achieved a 7 out of 10:

AOS's Dividend Yield is rather good when compared to the industry average which is at 1.04. AOS pays more dividend than 100.00% of the companies in the same industry.
On average, the dividend of AOS grows each year by 9.92%, which is quite nice.
AOS has paid a dividend for at least 10 years, which is a reliable track record.
AOS has not decreased their dividend for at least 10 years, which is a reliable track record.
AOS pays out 33.62% of its income as dividend. This is a sustainable payout ratio.

Assessing Health Metrics for NYSE:AOS

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:AOS was assigned a score of 8 for health:

AOS has an Altman-Z score of 7.80. This indicates that AOS is financially healthy and has little risk of bankruptcy at the moment.
AOS has a better Altman-Z score (7.80) than 85.00% of its industry peers.
The Debt to FCF ratio of AOS is 0.25, which is an excellent value as it means it would take AOS, only 0.25 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.25, AOS belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that AOS is not too dependend on debt financing.
AOS has a Debt to Equity ratio of 0.06. This is in the better half of the industry: AOS outperforms 80.00% of its industry peers.
AOS does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

A Closer Look at Profitability for NYSE:AOS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:AOS has achieved a 8:

AOS's Return On Assets of 17.79% is amongst the best of the industry. AOS outperforms 90.00% of its industry peers.
With an excellent Return On Equity value of 29.28%, AOS belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.35%, AOS belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AOS is above the industry average of 13.19%.
The last Return On Invested Capital (24.35%) for AOS is above the 3 year average (17.74%), which is a sign of increasing profitability.
AOS has a better Profit Margin (14.41%) than 77.50% of its industry peers.
Looking at the Operating Margin, with a value of 19.04%, AOS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AOS has grown nicely.
With a decent Gross Margin value of 38.21%, AOS is doing good in the industry, outperforming 67.50% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of AOS contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.