A. O. Smith Corporation (AOS) will raise its quarterly dividend by almost 29 percent to $0.18 per share in 2018. This follows last year's dividend hike of 16.7 percent.

The dividend is payable on February 15, 2018 to shareholders of record on January 31, 2018. The increase is consistent with the five year compound annual growth rate of its dividend which is over 25 percent. 

"A. O. Smith values its shareholders, and we are proud to say this is the 13th consecutive year the company has increased its quarterly cash dividend," Ajita Rajendra, chairman and chief executive officer, said.  "The company's strong balance sheet and cash-generating ability give us the confidence to increase our dividend."

A. O. Smith Corporation is manufacturer of residential and commercial water heating equipment and boilers, as well as a manufacturer of water treatment products for residential and light commercial applications. In North America, A.O. Smith also manufactures expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, related products and parts. The company is headquartered in Milwaukee, WI, and has operations in the U.S., Canada, China, India, Mexico, the Netherlands, Turkey, the United Kingdom and Vietnam. A. O. Smith Corporation has paid cash dividends on its common stock every year since 1940.