Watsco, Inc. (WSO) to Issue Quarterly Dividend of $3.30 on October 30th

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

Watsco has raised its dividend by an average of 0.1%per year over the last three years and has raised 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 Performance

NYSE:WSO opened at $297.25 on Friday. The firm has a market cap of $12.26 billion, a P/E ratio of 25.78 and a beta of 1.06. Watsco has a fifty-two week low of $295.75 and a fifty-two week high of $459.00. The firm has a 50-day simple moving average of $315.96 and a two-hundred day simple moving average of $366.02.

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

Wall Street Analysts Forecast Growth

Several research firms recently commented on WSO. Robert W. Baird set a $400.00 price objective on Watsco in a research report on Thursday, July 30th. Stephens reissued an “overweight” rating and set a $485.00 price target on shares of Watsco in a report on Monday, August 17th. Morgan Stanley lifted their price objective on Watsco from $370.00 to $405.00 and gave the stock an “equal weight” rating in a report on Friday, July 10th. Weiss Ratings reissued a “hold (c)” rating on shares of Watsco in a report on Tuesday, September 22nd. Finally, Zacks Research downgraded Watsco from a “hold” rating to a “strong sell” rating in a research note on Tuesday, September 22nd. Two analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $395.50.

About Watsco

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.