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

Watsco, Inc. (NYSE:WSO) announced a quarterly dividend on Monday, July 1st, Zacks reports. Investors of record on Tuesday, July 16th will be given a dividend of 2.70 per share by the construction company on Wednesday, July 31st. This represents a $10.80 annualized dividend and a yield of 2.19%. The ex-dividend date is Tuesday, July 16th.

Watsco has raised its dividend 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 68.5% meaning its dividend is sufficiently covered by earnings. Analysts expect Watsco to earn $15.77 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 68.5%.

Watsco Trading Up 0.6 %

NYSE WSO opened at $492.60 on Monday. The business has a 50 day simple moving average of $476.80 and a 200 day simple moving average of $433.83. Watsco has a one year low of $337.58 and a one year high of $502.00. The stock has a market capitalization of $19.85 billion, a P/E ratio of 37.89 and a beta of 0.88. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.92 and a quick ratio of 1.31.

Watsco (NYSE:WSO) last released its earnings results on Wednesday, April 24th. The construction company reported $2.17 EPS for the quarter, missing the consensus estimate of $2.26 by ($0.09). Watsco had a return on equity of 19.26% and a net margin of 7.03%. The business had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.59 billion. During the same period in the prior year, the business earned $2.83 EPS. The company’s revenue for the quarter was up .9% on a year-over-year basis. Research analysts expect that Watsco will post 14.1 earnings per share for the current year.

Insider Activity

In other news, EVP Barry S. Logan sold 774 shares of the firm’s stock in a transaction that occurred on Friday, May 10th. The stock was sold at an average price of $473.85, for a total value of $366,759.90. Following the transaction, the executive vice president now owns 1,770 shares in the company, valued at $838,714.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, Director John Alexander Macdonald sold 5,334 shares of the firm’s stock in a transaction that occurred on Thursday, May 9th. The stock was sold at an average price of $466.41, for a total value of $2,487,830.94. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Barry S. Logan sold 774 shares of the firm’s stock in a transaction that occurred on Friday, May 10th. The shares were sold at an average price of $473.85, for a total value of $366,759.90. Following the completion of the transaction, the executive vice president now owns 1,770 shares in the company, valued at approximately $838,714.50. The disclosure for this sale can be found here. Corporate insiders own 12.86% of the company’s stock.

Wall Street Analyst Weigh In

WSO has been the subject of several recent analyst reports. Stephens reaffirmed an “overweight” rating and set a $500.00 target price on shares of Watsco in a research note on Thursday, April 25th. Robert W. Baird raised their price objective on Watsco from $420.00 to $460.00 and gave the company an “outperform” rating in a research note on Thursday, April 25th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat.com, Watsco currently has an average rating of “Hold” and a consensus price target of $404.25.

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.