Milwaukee-based A. O. Smith Corp. on Monday approved a 20-percent increase in the company’s quarterly cash dividend to 24 cents per share.
The board also approved a plan to split the company’s stock two-for-one in the form of a 100 percent stock dividend, payable to owners of common stock and class A common stock .
“A. O. Smith has continued to experience strong, profitable growth from its global operations,” said Paul W. Jones, executive chairman. “As demonstrated again last year, we believe our operations have the ability to generate the cash needed to support our global growth initiatives. We believe our balance sheet remains in excellent condition as well, giving us the ability to support these dividend increases. With the cash we have on hand and the borrowing capacity in place, we can continue to pursue our strategic growth plan and respond to any acquisition opportunities that present themselves.”