Watsco Boosts Annual Dividend 11% to $12.00 Per Share

Company Overview - Watsco, Inc. is the largest distributor of heating, air conditioning, and refrigeration (HVAC/R) products with operations in the United States, Canada, Mexico, Puerto Rico, and exports to Latin America and the Caribbean [3] Dividend Announcement - The Board of Directors approved an 11% increase in the annual dividend to $12.00 per share for each outstanding share of Common and Class B common stock, effective from the next quarterly dividend payment in April 2025 [1][2] Financial Performance and Strategy - The increase in dividends reflects the strength of Watsco's 2024 performance and the company's confidence in its business prospects, supported by a strong balance sheet [2] - Watsco has a history of paying dividends for 51 consecutive years, with a philosophy of sharing increasing cash flow through higher dividends while maintaining a conservative balance sheet [2] Market Focus - The company focuses on the replacement market, which has grown due to the aging of installed HVAC systems and the introduction of more energy-efficient models [4] - Approximately 102 million HVAC systems in the United States have been in service for over 10 years, many operating below current minimum efficiency standards, indicating a significant market opportunity for Watsco [4]