Watsco (WSO) is North America's top HVAC/R (heating, ventilation, air conditioning and refrigeration) distributor. The company's financial strength enables it to be a perennial acquirer. At the same time, it's also offered shareholders outsized returns.
Shareholders will remember the company boosted its dividend to a rate beyond the prior year's earnings when it reported 2019 fourth-quarter and full-year results on February 13, 2020. Adjusted diluted earnings were $6.50 per share in 2019. The new dividend rate is $7.10 per share. At 11%, this is a double-digit bump from the previous rate of $6.40