Watsco Declares $2.45 Quarterly Dividend and Commemorates 50 Years of Dividend Payments
MIAMI, Jan. 02, 2024 – Watsco, Inc. (NYSE: WSO) has announced that its Board of Directors has approved a regular quarterly cash dividend of $2.45 per share on its Common and Class B common stock. Shareholders of record as of January 17, 2024, will receive the dividend on January 31, 2024.
The dividend declaration marks an impressive milestone for Watsco, as it signifies the company’s 50th consecutive year of paying dividends. Watsco’s Chairman and CEO, Albert H. Nahmad, expressed delight in reaching this accomplishment, particularly given the company’s robust track record of growth. He stated, We believe this represents an extraordinary milestone, especially given the Company’s strong track record of growth. We are very pleased to share our success with shareholders through dividends, which have grown at a compounded annual growth rate of 21% since Watsco entered distribution in 1989.
Watsco’s approach involves sharing cash flow through dividends while maintaining a conservative balance sheet, ensuring continued capacity to build its distribution network. The company considers future changes in dividends based on investment opportunities, cash flow, general economic conditions, and its overall financial position.
As the largest distributor of heating, air conditioning, and refrigeration (HVAC/R) products, Watsco operates a vast network across the United States, Canada, Mexico, Puerto Rico, and exports to Latin America and the Caribbean. The company estimates that approximately 350,000 contractors and technicians visit or contact its 691 locations annually for information, technical support, and product purchases.
With a focus on the replacement market, Watsco plays a crucial role in reducing CO2e emissions and combating climate change. The aging of existing HVAC systems, the introduction of higher energy-efficient models, and the essential need for HVAC products in homes and businesses have contributed to the growth of the replacement market. According to the Energy Information Administration’s data released in May 2022, over 102 million HVAC systems installed in the United States have been in service for more than a decade, operating below current minimum efficiency standards.
Replacing outdated systems with higher-efficiency models offers significant environmental benefits. HVAC systems account for approximately half of U.S. household energy consumption, according to the Department of Energy. Therefore, upgrading to more efficient systems is a meaningful step homeowners can take to reduce electricity consumption and minimize their carbon footprint in the long run.
Based on estimates validated by independent sources, Watsco has successfully averted an estimated 18.3 million metric tons of CO2e emissions from January 1, 2020, to September 30, 2023, by selling replacement HVAC systems that meet higher-efficiency standards. This achievement is equivalent to removing 4.1 million gas-powered vehicles from the road annually.
Watsco’s commitment to reducing emissions and fostering environmental sustainability has aligned its business strategy with the global drive for a greener future.
Please note that this news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements address Watsco’s expected financial and operational results and are subject to uncertainty and changes in circumstances. Actual results may differ materially due to various factors, including economic conditions, market competition, regulatory changes, and other important factors detailed in Watsco’s filings with the Securities and Exchange Commission.
As Watsco celebrates its 50th year of dividend payments, the company remains focused on its mission to deliver value to shareholders while contributing to a more sustainable future through its HVAC replacement initiatives.
For more information about Watsco, please visit www.watsco.com.
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