MILWAUKEE, April 15, 2013 /PRNewswire/ -- The A. O. Smith Corporation (NYSE:AOS) Board of Directors today approved a 20 percent increase in the company's quarterly cash dividend to $.24 per share.
The dividend increase affects the company's Common Stock and Class A Common Stock. The record date for the cash dividend is April 29, and the payment date is May 14.
This represents the eighth consecutive year the Milwaukee-based water technology company has increased its quarterly cash dividend.
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. At the company's annual meeting of stockholders today, stockholders approved a proposal to increase the company's authorized shares of Common Stock, which facilitated the stock split.The record date for the stock dividend is April 30. Holders of the company's Common Stock and Class A Common Stock will receive one additional share of such class of stock for every share they own as of the record date. The payment date for the stock dividend is May 15. The stock dividend will increase the total number of shares of Common Stock and Class A Common Stock outstanding to approximately 92.7 million shares. The cash dividend will be paid on the basis of the pre-split shares. " A. O. Smith has continued to experience strong, profitable growth from its global operations," Paul W. Jones, executive chairman, said. "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."