A.O. Smith runs a stable boiler and water-heater business with a P/E of 16 and stable dividends, but its 6% total shareholder return is unimpressive and only standard for established companies; with housing weak, the stock has been very expensive and may get cheaper, and a cheaper alternative is coming.

A.O. Smith's company also experienced prosperity. It has now dropped slightly. Boilers and water heaters, stable operation. Price-to-earnings ratio 16. Dividend payouts are stable.

Everything looks good. Although the housing situation looks bad, the total return to shareholders, from buybacks and distributions, is 6%. Not bad, but not great either. It's standard pricing for established companies of this type these days.

However, 6-7% is not an impressive percentage. It has been very expensive recently. It might become cheaper. We have a cheaper one coming.