Dividend Aristocrat A.O. Smith Corporation (AOS) will raise its quarterly dividend by another 22.2 percent to $0.22 per share in the fourth quarter of 2018.

This is the second increase in the company's dividend rate in 2018: in Q1 of this year the water heating equipment maker had already hiked its dividend by 28.6%.

The increased dividend is payable on November 15, 2018 to shareholders of record October 31, 2018. The ex-date for this next dividend of 22 cents per share is October 30, 2018. The new annual dividend of $0.88 per share yields 1.8% at a stock price of $48.49 for A.O. Smith.

"A. O. Smith values its shareholders and works hard to ensure they are rewarded for investing in our company. We are proud to say the five-year compound annual growth rate of our dividend is 30 percent," Kevin Wheeler, president and chief executive officer, said. "Our confidence in expected long-term sales growth and associated cash flow allows us to provide an attractive dividend yield."

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.