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 $320.20 / share,
the stock’s dividend yield is 3.06%.
Looking back five years and taking a sample every week, the average dividend yield has been
3.41%,
the lowest has been 2.48%,
and the highest has been 5.13%.
The standard deviation of yields is 0.58 (n=237).
The current dividend yield is
0.59 standard deviations
below
the historical average.
Additionally, the company’s dividend payout ratio is 0.59.
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’s 3-Year dividend growth rate is 0.38%,
demonstrating that it has increased its dividend over time.
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Analyst Price Forecast Suggests 3.10% Downside
As of March 30, 2023,
the average one-year price target for Watsco is $310.28.
The forecasts range from a low of $220.18 to a high of $393.75.
The average price target represents a decrease of 3.10% from its latest reported closing price of $320.20.
See our leaderboard of companies with the largest price target upside.
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 1025 funds or institutions reporting positions in Watsco.
This is an increase
of
51
owner(s) or 5.24% in the last quarter.
Average portfolio weight of all funds dedicated to WSO is 0.33%,
a decrease
of 5.99%.
Total shares owned by institutions increased
in the last three months by 2.50% to 38,673K shares.
The put/call ratio of WSO is 4.83, indicating a
bearish
outlook.
What are Large Shareholders Doing?
Baillie Gifford &
holds 2,181K shares
representing 6.02% ownership of the company.
In it’s prior filing, the firm reported owning 2,165K shares, representing
an increase
of 0.73%.
The firm
decreased
its portfolio allocation in WSO by 62.06% over the last quarter.
Kayne Anderson Rudnick Investment Management
holds 1,638K shares
representing 4.52% ownership of the company.
In it’s prior filing, the firm reported owning 1,730K shares, representing
a decrease
of 5.63%.
The firm
decreased
its portfolio allocation in WSO by 48.96% over the last quarter.
Charles Schwab Investment Management
holds 1,363K shares
representing 3.76% ownership of the company.
In it’s prior filing, the firm reported owning 1,282K shares, representing
an increase
of 5.99%.
The firm
decreased
its portfolio allocation in WSO by 99.92% over the last quarter.
Capital World Investors
holds 1,075K shares
representing 2.97% ownership of the company.
No change in the last quarter.
IJH – iShares Core S&P Mid-Cap ETF
holds 1,027K shares
representing 2.83% ownership of the company.
In it’s prior filing, the firm reported owning 970K shares, representing
an increase
of 5.53%.
The firm
decreased
its portfolio allocation in WSO by 10.50% over the last quarter.
Watsco Background Information
(This description is provided by the company.)
Watsco is the largest distribution network for 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. Watsco estimates that over 300,000 contractors and technicians visit or call one of its 600 locations each year to get information, obtain technical support and buy products. HVAC/R products provide comfort to homes and businesses regardless of the outdoor climate. Older systems often operate below today’s government mandated energy efficiency and environmental standards. Watsco has an opportunity to accelerate the replacement of these systems at a scale greater than its competitors as the movement toward reducing energy consumption and its environmental impact continues. This is especially important since heating and cooling accounts for approximately half of the energy consumed in a typical U.S. home.
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.
