Watsco shares have gained 22% year-to-date in 2026, outperforming the S&P 500's 8% rise, while offering a forward dividend yield above 3%. The Miami-based HVAC distributor's board approved a 10% quarterly dividend increase to $3.30 per share in April, lifting the annual rate to $13.20 and a forward yield of 3.29%. March quarter revenue of $1.53 billion beat estimates by 3.4%, and adjusted earnings per share of $1.87 topped consensus by 10.7%, supported by an adjusted EBITDA margin of 8.4%. Watsco also closed the acquisition of Jackson Supply Company, a distributor with $230 million in 2025 sales and 25 locations across Sun Belt states, strengthening its footprint in high-growth markets. Analysts maintain a consensus Hold rating with an average 12-month price target of $420.80, implying about 2% upside from current levels near $411.
Watsco IncDividend raised 10%, earnings beat estimates, and acquisition closed, all positive financial events.