2 Stocks With Better Dividends Than A. O. Smith Corp.

There's no question that water heater maker A. O. Smith Corp (NYSE: AOS) has an amazing track record of success. That record is highlighted by 24 years of consecutive annual dividend hikes, with an annualized rate of increase of 16% over the past decade. And as it moves into India, it looks like it could repeat the success it had in China -- where sales have grown at 22% a year over the past decade. The only problem is the tiny 0.9% yield. For income investors looking for higher yields than that, here's why you should consider midstream industry stalwarts Magellan Midstream Partners, L.P. (NYSE: MMP) and ONEOK Inc. (NYSE: OKE) instead.   

Magellan's yield is currently around 5.2%, more than five times what A. O. Smith offers, and more than double what you'd get from an S&P 500 index fund. The partnership's distribution track record doesn't stretch out to 24 years, but it has increased the payout every single quarter since coming public in 2001. The compound annual distribution growth rate over that span was an impressive 12%. That's not quite as fast as Smith, but that's the cost of looking for a higher yield.   

If you're looking for income to help fund your retirement, A. O. Smith's low yield is a problem. Image source: Getty Images.

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Source: Fool.com