This S&P 500 Stock is a Genius Buy for Dividend Growth
Hot water is taken for granted in developed markets, and it is becoming an affordable luxury in developing markets. This simple statement tells you a massive amount about water heater maker A. O. Smith (NYSE: AOS) and its expansion efforts.
This S&P 500 component has been a huge dividend growth stock for years. If it can replicate past successes in some newer markets, it should remain one in the future.
If you have ever had to take a cold shower, you know just how much more enjoyable it is to have ready access to hot water. This is why people quickly replace broken hot water heaters. North America makes up around 75% of A. O. Smith's business, and the region is solidly in the developed market category. Replacement of old or broken water heaters accounts for roughly 80% of industry volume. There's new construction, of course, but the high replacement level provides a solid underpinning for the company's business.
Source Fool.com
