Watsco, Inc. (NYSE:WSO) Shares Will Pay Quarterly Dividend of $3.30

Key Points

• Watsco declared a quarterly dividend of $3.30 per share, payable October 30 to shareholders of record on October 16. The annualized dividend is $13.20 per share, representing a 4.4% yield and marking the company’s 13th consecutive year of dividend increases.
• The dividend is relatively well covered by current earnings, with an 85.3% payout ratio, but analysts expect the forward payout ratio to rise to 99.4% based on projected earnings of $13.28 per share.
• Watsco shares fell 0.4% to $301.36, near their 12-month low, after the company’s latest quarterly results missed analyst expectations on both earnings and revenue despite 2.1% year-over-year revenue growth.

Watsco, Inc. (NYSE:WSO - Get Free Report) announced a quarterly dividend on Thursday, October 1st. Stockholders of record on Friday, October 16th will be given a dividend of $3.30 per share by the construction company on Friday, October 30th. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date is Friday, October 16th.

Watsco has increased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 13 years. Watsco has a payout ratio of 85.3% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities research analysts expect Watsco to earn $13.28 per share next year, which means the company should continue to be able to cover its $13.20 annual dividend with an expected future payout ratio of 99.4%.

Watsco Stock Down 0.4%

Shares of NYSE WSO traded down $1.33 during midday trading on Thursday, hitting $301.36. 354,438 shares of the company's stock were exchanged, compared to its average volume of 450,700. Watsco has a 12 month low of $295.75 and a 12 month high of $459.00. The company's 50 day moving average price is $318.42 and its 200 day moving average price is $366.98. The firm has a market capitalization of $12.43 billion, a PE ratio of 26.14 and a beta of 1.05.

Watsco (NYSE:WSO - Get Free Report) last posted its earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing analysts' consensus estimates of $4.41 by ($0.41). Watsco had a return on equity of 14.40% and a net margin of 6.53%.The business had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.14 billion. During the same period in the previous year, the firm posted $4.52 earnings per share. The firm's revenue was up 2.1% compared to the same quarter last year. On average, equities research analysts anticipate that Watsco will post 12.21 EPS for the current year.

Watsco Company Profile

Watsco, Inc NYSE: WSO is a distributor of heating, air conditioning and refrigeration equipment and related products. The company supplies residential and commercial contractors with air conditioners, heat pumps, furnaces, refrigeration systems, indoor air-quality products, controls, replacement parts and other installation supplies.

Watsco serves the replacement and new-construction markets through a network of distribution centers, branches, showrooms and e-commerce platforms. Its customers primarily include HVAC and refrigeration contractors, dealers and other industry professionals, while its products are sourced from major manufacturers and distributed under leading industry brands.

Founded in 1956, Watsco has expanded through organic growth and acquisitions to become one of the largest HVAC and refrigeration distributors in North America.

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