A. O. Smith

A. O. Smith, headquartered in Milwaukee, is a leading maker of residential and commercial water heaters and boilers, with a fast-growing water treatment business and a substantial presence in China and India. Its products sit in a market driven by replacement demand and tightening efficiency standards, which lends the company steadier volumes than most industrials enjoy. The firm has paid dividends for decades and built one of the longer records of consecutive increases in its sector, supported by a conservative balance sheet and consistent free cash flow. The yield itself is modest, so the appeal lies less in current income than in a reliable, well-covered payout that has grown patiently over many years.