Watsco (WSO), a leading HVAC company, has raised its dividend 10% on the back of strong earnings.
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The company, which specializes in air conditioning, heating and refrigeration equipment and supplies declared a quarterly dividend of $3.30 per share, a 10% increase from its previous dividend of $3.00. The new distribution gives WSO stock a strong yield of 3.63%.
The new dividend is payable to shareholders of record on April 30. The ex-dividend date has been set at April 16. Watsco has now raised its dividend for 13 consecutive years as it prioritizes returning value to its stockholders.
WSO Stock Rises
The latest dividend hike comes with WSO stock on an upswing. So far this year, Watsco’s share price has gained 7%, outperforming the broader market as demand for its products grows, in part, due to the buildout of artificial intelligence (AI) data centers that rely on cooling systems.
Watsco has now paid a dividend to its shareholders for 52 consecutive years. Management says that a strong balance sheet should support continued dividend increases in years to come. As a group, HVAC stocks have been performing well in recent months as the AI data center buildout accelerates.
Is WSO Stock a Buy?
Watsco’s stock has a consensus Hold rating among six Wall Street analysts. That rating is based on six Hold recommendations issued in the last three months. The average WSO price target of $391.25 implies 5% upside from current levels.
