Watsco said on April 3, 2023 that its board of directors declared a regular quarterly dividend of $2.45 per share ($9.80 annualized). Previously, the company paid $2.45 per share.
Shares must be purchased before the ex-div date of April 14, 2023 to qualify for the dividend. Shareholders of record as of April 17, 2023 will receive the payment on April 28, 2023.
At the current share price of $318.53 / share, the stock's dividend yield is 3.08%. Looking back five years and taking a sample every week, the average dividend yield has been 4.57%, the lowest has been 2.76%, and the highest has been 6.63%. The standard deviation of yields is 1.16 (n=53).
The current dividend yield is 1.28 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.53. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
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Analyst Price Forecast Suggests 2.98% Downside
As of March 30, 2023, the average one-year price target for Watsco is $309.03. The forecasts range from a low of $219.29 to a high of $392.16. The average price target represents a decrease of 2.98% from its latest reported closing price of $318.53.
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The projected annual revenue for Watsco is $7,521MM, an increase of 3.39%. The projected annual non-GAAP EPS is $13.45.
What is the Fund Sentiment?
There are 21 funds or institutions reporting positions in Watsco. This is a decrease of 1 owner(s) or 4.55% in the last quarter. Average portfolio weight of all funds dedicated to WSO.B is 0.14%, a decrease of 4.86%. Total shares owned by institutions decreased in the last three months by 81.54% to 39K shares.
What are Large Shareholders Doing?
Gabelli Funds holds 8K shares representing 0.02% ownership of the company. No change in the last quarter.
GCASX - The Gabelli Small Cap Growth Fund holds 8K shares representing 0.02% ownership of the company. No change in the last quarter.
DFQTX - U.s. Core Equity 2 Portfolio - Institutional Class holds 5K shares representing 0.01% ownership of the company. No change in the last quarter.
Compass Ion Advisors holds 3K shares representing 0.01% ownership of the company. No change in the last quarter.
DFEOX - U.s. Core Equity 1 Portfolio - Institutional Class holds 2K shares representing 0.01% ownership of the company. No change in the last quarter.
Watsco Background Information
(This description is provided by the company.)
Watsco, Inc. is the largest distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies in the United States. Watsco was founded more than 60 years ago as a manufacturer of parts, components, and tools used in the HVAC/R industry.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
