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Watsco Inc. (WSO) logo

Watsco Inc.

S&P 500

WSO/Industrials · Industrial Distribution/NYSE

Dividend Yield

3.10%

$12.30 · Annual Dividend

Stock Price$412.19P/E32.9MCap16.4BLast update: Jun 26, 2026 at 06:56

Dividend Safety Rating

71/ 100Safe

WSO's dividend appears safe and well-supported. Strengths include a 1.0% net debt / total assets & 3.3x current ratio. Areas of concern: 98.4% earnings payout ratio & 81.3% cfo payout ratio. The dividend has been growing at a 11.06% 5-year CAGR.

Based on 14 of 15 metrics

Strengths

  • Net Debt / Total Assets: 1.0%Healthy balance sheet with low net debt.
  • Current Ratio: 3.3xStrong short-term liquidity to meet obligations.
  • Debt-to-Equity: 15.1Conservative debt level relative to equity.

Risks

  • Earnings Payout Ratio: 98.4%High earnings payout ratio leaves little safety margin.
  • CFO Payout Ratio: 81.3%Operating cash flow leaves little room for the payout.
  • Operating Margin: 6.9%Operating margin is thin and pressures the dividend.

Payout & Coverage

Warning

Balance Sheet

Very Safe
3.3xVery Safe
15.1Very Safe

Profitability

Caution

Dividend Track Record

Very Safe
11+ yrsVery Safe
NoneVery Safe
11.1%Very Safe
GrowingVery Safe

About Watsco Inc.

Watsco Inc. is a prominent player in the distribution sector, serving as a leading distributor of air conditioning, heating, and refrigeration equipment and related parts in North America. With a comprehensive product lineup, Watsco caters primarily to the HVAC/R industry, serving both residential and commercial markets. The company is pivotal in supporting contractors and technicians by providing not only essential hardware but also cutting-edge climate control systems, including energy-efficient solutions that align with evolving sustainability standards. Established in the late 1940s and headquartered in Miami, Florida, Watsco has developed an extensive distribution network that enhances its capacity to meet regional demand variations quickly and effectively. Its role in the market is critical, as it supplies vital components that ensure the functionality and efficiency of heating and cooling systems, which are crucial for comfort and safety across various climate zones. Watsco's strategic focus on technological advancements and customer service further solidifies its stance as an influential entity in the HVAC/R industry, making it a significant contributor to both regional economies and broader climate control innovations.

Dividend Overview

Dividend Yield

3.10%

Annual Dividend

$12.30

Frequency

Quarterly

Payout Ratio

98.44%

FCF Payout Ratio

70.06%

52-Week Range

$323.05 - $494.94

Dividend History (2016–2025)

WSO annual dividend per share and yield history

Earnings & Profitability

WSO earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

April 16, 2026

Last Payment Date

April 30, 2026

Dividend Growth

3-Year Dividend CAGR

11.02%

5-Year Dividend CAGR

11.06%

10-Year Dividend CAGR

15.37%

3-Year Total Growth

36.84%

5-Year Total Growth

68.95%

10-Year Total Growth

317.86%

Income Calculator

WSO Dividend Calculator

Total Investment

$41,219.00

Annual Income

$1,230.00

Quarterly Income

$307.50

Monthly Income

$102.50

Frequently Asked Questions

What is WSO's current dividend yield?
Watsco Inc. (WSO) currently has a dividend yield of 3.10%, based on a stock price of $412.19 and an annual dividend of $12.30.
When is WSO's next dividend payment date?
WSO's next ex-dividend date is 2026-04-16 and the next payment date is 2026-04-30. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does WSO pay in dividends per year?
Watsco Inc. paid $11.70 per share in annual dividends in 2025. The dividends are paid quarterly.
Has WSO been increasing its dividend?
Watsco Inc. has grown its dividend at a 5-year CAGR of 11.06% and a 10-year CAGR of 15.37%.
Is WSO's dividend safe?
Watsco Inc. has a payout ratio of 98.44%. Its free cash flow payout ratio is 70.06%. The payout ratio is moderate. Monitor earnings to ensure sustainability.
How is WSO's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Watsco Inc.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for industrials companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.