Shares of A.O. Smith Corp. traded up 0.9% in midday trade Friday, putting them on track for a record close, after the maker of water heating equipment said it raised its quarterly dividend by 29%. The new dividend of 18 cents a share, which is up from 14 cents a share, will be payable Feb. 15 to shareholders of record on Jan. 31. At current share prices, the new annual dividend rate implies a dividend yield of 1.08%, compared with an implied yield for the S&P 500 of 2.02%, according to FactSet. “The company’s strong balance sheet and cash-generating ability give us the confidence to increase our dividend,” said Chief Executive Ajita Rajendra. The stock has rallied 40% over the past 12 months, while the S&P 500 has gained 24%.
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