Fund Gurus

A.O. Smith: Small-Cap Dividend Payer With Growth Potential

A. O. Smith (NYSE:AOS) is a small-cap stock offering large long-term gains. The company is growing revenues in major markets and also capturing market share. The company has a clear growth strategy and is successfully implementing this, highlighted by its growth in China, as well as the successful acquisition of Lochinvar. There is potential upside of 30%-50% over the next 2 years and investors have also been rewarded with regular and rising dividend payments.

Company Background

AOS manufactures and sells water heaters and boilers to the residential and commercial property markets on a global scale. The products are sold through independent wholesale plumbing distributors, hardware and home center chains, and manufacturer representative firms. The company has manufacturing operations...

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