Forget China: India Is This Dividend Champion's Next Big Opportunity

There's a new and highly contagious virus running amuck in China known as COVID-19. Unless you are a hermit, you probably know that already. Just about any company with ties to that country is being scrutinized, and perhaps rightly so. But the world is a much larger place than just China, and investors should be looking at the bigger picture when examining investments.

This is why the 35% downturn in A. O. Smith's (NYSE: AOS) stock since early 2018 could end up being vastly overdone. Here's what you need to know about this dividend champion before you write it off as dead.

There's no denying the facts: A. O. Smith generates around a third of its top line from China, so the country is very important to the water heater maker's future. The trouble really started in 2018, when sales growth in the giant Asian nation began to slow. The company's rest of world segment, which is mostly made up of China, saw a sales rise of around 5% in 2018, with segment earnings basically flat. Weakening economic growth in China was the main reason.   

Continue reading

Source Fool.com