Watsco Declares $2.70 Quarterly Dividend
Rhea-AI Summary
Watsco (NYSE: WSO) has declared a quarterly cash dividend of $2.70 per share on both Common and Class B common stock, payable on January 31, 2025, to shareholders of record as of January 17, 2025. The company has maintained a 51-year streak of dividend payments, emphasizing its commitment to sharing cash flow while maintaining a conservative balance sheet.
As the largest distributor of HVAC/R products across the United States, Canada, Mexico, and Puerto Rico, Watsco focuses on the replacement market. According to March 2023 data, approximately 102 million HVAC systems in the US have been operating for over 10 years below current efficiency standards. The company has contributed to environmental sustainability by averting an estimated 21.8 million metric tons of CO2e emissions from January 2020 to September 2024 through higher-efficiency HVAC system sales.
Positive
- 51-year consistent dividend payment track record
- Maintains strong market position as largest HVAC/R distributor
- Large market opportunity with 102 million aging HVAC systems in US
- Significant environmental impact through efficiency improvements
Negative
- None.
News Market Reaction – WSO
On the day this news was published, WSO declined 1.07%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MIAMI, Jan. 02, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc.’s (NYSE: WSO) Board of Directors has declared a regular quarterly cash dividend of
Watsco has paid dividends to shareholders for 51 consecutive years. The Company’s philosophy is to share cash flow through dividends while maintaining a conservative balance sheet with continued capacity to build its distribution network. Future changes in dividends are considered in light of investment opportunities, cash flow, general economic conditions and Watsco’s overall financial condition.
About Watsco
Watsco is the largest distributor of heating, air conditioning and refrigeration (HVAC/R) products with locations in the United States, Canada, Mexico, and Puerto Rico, and on an export basis to Latin America and the Caribbean.
We focus on the replacement market, which has increased in size and importance as a result of the aging of installed systems, the introduction of higher energy efficient models and the necessity of HVAC products in homes and businesses. According to data published in March 2023 by the Energy Information Administration, there are approximately 102 million HVAC systems installed in the United States that have been in service for more than 10 years, most of which operate well below current minimum efficiency standards.
Accordingly, Watsco has the opportunity to be a significant and important contributor toward climate change as it plays an important role to lower CO2e emissions. According to the Department of Energy, HVAC systems account for roughly half of U.S. household energy consumption. As such, replacing older systems at higher efficiency levels is a critical means for homeowners to reduce electricity consumption and their carbon footprint.
Based on estimates validated by independent sources, Watsco averted an estimated 21.8 million metric tons of CO2e emissions from January 1, 2020 to September 30, 2024 through the sale of replacement HVAC systems at higher-efficiency standards, an equivalent of eliminating 5.2 million gas powered vehicles off the road annually. More information, including sources and assumptions used to support the Company’s estimates, can be found at www.watsco.com.
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments.
Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.
Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: blogan @watsco.com
FAQ
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