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

Watsco, Inc. (NYSE:WSO) declared a quarterly dividend on Monday, July 1st, Zacks reports. Shareholders 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 2.33%. The ex-dividend date of this dividend is Tuesday, July 16th.

Watsco has increased its dividend payment by an average of 12.3% annually over the last three years and has raised its dividend annually for the last 11 consecutive years. Watsco has a payout ratio of 68.7% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Watsco to earn $16.10 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 67.1%.

Watsco Stock Down 0.1 %

Shares of NYSE:WSO opened at $462.65 on Tuesday. The company has a 50-day moving average price of $470.04 and a 200 day moving average price of $430.11. The company has a current ratio of 2.92, a quick ratio of 1.31 and a debt-to-equity ratio of 0.01. Watsco has a 12 month low of $337.58 and a 12 month high of $493.65. The company has a market cap of $18.64 billion, a price-to-earnings ratio of 35.59 and a beta of 0.88.

Watsco (NYSE:WSO) last released its earnings results on Wednesday, April 24th. The construction company reported $2.17 earnings per share for the quarter, missing the consensus estimate of $2.26 by ($0.09). The company had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.59 billion. Watsco had a net margin of 7.03% and a return on equity of 19.26%. The business’s revenue for the quarter was up .9% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.83 EPS. As a group, equities research analysts predict that Watsco will post 14.26 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Stephens reiterated an “overweight” rating and issued a $500.00 price target on shares of Watsco in a report on Thursday, April 25th. Robert W. Baird increased their target price on Watsco from $420.00 to $460.00 and gave the stock an “outperform” rating in a research note on Thursday, April 25th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $404.25.

Insider Activity

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

Watsco Company Profile

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.