Watsco Declares $3.00 Quarterly Dividend, Reflects 11% Increase to an Annual Rate of $12.00 Per Share

Rhea-AI Summary

Watsco (NYSE: WSO) has announced an 11% increase in its quarterly cash dividend to $3.00 per share on Common and Class B common stock, payable on April 30, 2025, to shareholders of record as of April 15, 2025. This increase brings the annual dividend rate to $12.00 per share.

The company has maintained a 51-year streak of dividend payments, demonstrating its commitment to shareholder returns while maintaining a strong balance sheet. As the largest HVAC/R products distributor in North America, Watsco focuses on the replacement market, serving approximately 102 million HVAC systems over 10 years old in the United States.

The company has contributed significantly to environmental sustainability, averting an estimated 22.8 million metric tons of CO2e emissions from 2020 to 2024 through higher-efficiency HVAC system sales, equivalent to removing 5.3 million gas-powered vehicles annually.

Positive

• 11% increase in quarterly dividend to $3.00 per share
• 51-year track record of consecutive dividend payments
• Strong balance sheet supporting dividend growth
• Large addressable market with 102 million aging HVAC systems
• Environmental impact through efficient HVAC systems sales

Negative

• None.

MIAMI, April 01, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc.’s (NYSE: WSO) Board of Directors has declared a regular quarterly cash dividend of $3.00 on each outstanding share of its Common and Class B common stock payable on April 30, 2025 to shareholders of record at the close of business on April 15, 2025. This marks an 11% increase to an annual rate of $12.00 per share.

Albert H. Nahmad, Watsco’s Chairman & CEO stated: “We are pleased to increase dividends to shareholders, reflecting our continued confidence in our business, which is fundamentally supported by our strong balance sheet.”

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.

The Company’s focus is 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 22.8 million metric tons of CO2e emissions from January 1, 2020 to December 31, 2024 through the sale of replacement HVAC systems at higher-efficiency standards, an equivalent of eliminating 5.3 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.

Contact
Barry S. Logan                     
Watsco, Inc.   
Executive Vice President                     
Phone: (305) 714-4102
e-mail: blogan@watsco.com  

FAQ

What is Watsco's new quarterly dividend amount for 2025?

Watsco (WSO) increased its quarterly dividend to $3.00 per share, payable on April 30, 2025.

How much has Watsco increased its annual dividend rate in 2025?

Watsco increased its annual dividend rate by 11% to $12.00 per share.

How long has Watsco (WSO) been paying dividends to shareholders?

Watsco has maintained a consistent dividend payment record for 51 consecutive years.

What environmental impact has Watsco achieved through its HVAC sales?

From 2020 to 2024, Watsco averted 22.8 million metric tons of CO2e emissions through higher-efficiency HVAC system sales.

What is the market opportunity for Watsco in HVAC replacement?

Watsco serves a market of approximately 102 million HVAC systems over 10 years old in the US, operating below current efficiency standards.