Heating and cooling specialist Watsco (NYSE: WSO ) announced today its third-quarter dividend of $0.40 per share on its common and Class B shares, a 60% increase in the payout made to investors from $0.25 per share.
Commenting on the company's philosophy of sharing cash flow through dividends, Watsco Chairman and CEO Albert H. Nahmad said, "As we have stated many times in the past, our goal over the long-term is to pay increasing dividends while maintaining a conservative balance sheet with capacity to make investments in our business and build our network. We will consider future increases in light of such investment opportunities, cash flow, general economic conditions, and our overall financial condition."
The board of directors said the quarterly dividend is payable on October 31 to holders of record at the close of business on October 15. The regular dividend payment equates to a $1.20-per-share annual dividend, yielding 1.3% based on the closing price today of Watsco's stock.