Watsco, Inc. (NYSE:WSO) Announces $2.70 Quarterly Dividend

Watsco, Inc. (NYSE:WSO) declared a quarterly dividend on Thursday, January 2nd,RTT News reports. Stockholders of record on Friday, January 17th will be paid a dividend of 2.70 per share by the construction company on Friday, January 31st. This represents a $10.80 dividend on an annualized basis and a dividend yield of 2.30%.

Watsco has raised its dividend payment by an average of 12.3% annually over the last three years and has raised its dividend every year for the last 11 years. Watsco has a payout ratio of 74.0% meaning its dividend is sufficiently covered by earnings. Analysts expect Watsco to earn $14.51 per share next year, which means the company should continue to be able to cover its $10.80 annual dividend with an expected future payout ratio of 74.4%.

Watsco Price Performance

NYSE:WSO opened at $468.80 on Friday. The stock has a market cap of $18.93 billion, a PE ratio of 36.23 and a beta of 0.92. The stock’s 50-day moving average is $511.51 and its two-hundred day moving average is $492.30. Watsco has a fifty-two week low of $373.33 and a fifty-two week high of $571.41.

Watsco (NYSE:WSO) last announced its quarterly earnings data on Wednesday, October 23rd. The construction company reported $4.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.73 by ($0.51). Watsco had a return on equity of 17.77% and a net margin of 6.99%. The firm had revenue of $2.16 billion for the quarter, compared to analysts’ expectations of $2.24 billion. During the same quarter in the prior year, the business posted $4.35 earnings per share. Watsco’s revenue was up 1.6% on a year-over-year basis. On average, equities research analysts anticipate that Watsco will post 13.06 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Barry S. Logan sold 10,998 shares of the business’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $508.21, for a total value of $5,589,293.58. The sale was disclosed in a filing with the SEC, which is available at this link. Company insiders own 12.86% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on WSO shares. Robert W. Baird reduced their target price on Watsco from $550.00 to $540.00 and set an “outperform” rating for the company in a report on Thursday, October 24th. Northcoast Research started coverage on shares of Watsco in a research note on Friday, November 22nd. They issued a “neutral” rating for the company.

About Watsco

Watsco, Inc, together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.