What Happened?

Shares of equipment distributor Watsco (NYSE: WSO) jumped 3% in the afternoon session after the company announced a regular quarterly cash dividend of $3.00 per share, extending its streak of paying dividends to 52 consecutive years. 

The dividend was set to be paid on January 30, 2026, to shareholders of record as of January 16, 2026, and applied to both Common and Class B common stock. The company has a long history of making payments to its shareholders. This track record reflects its stated commitment to sharing cash flow while also keeping a strong financial position to support its business operations.

After the initial pop the shares cooled down to $347.09, up 2.7% from previous close.

Is now the time to buy Watsco? Access our full analysis report here.

What Is The Market Telling Us

Watsco’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 8 months ago when the stock dropped 8.5% on the news that the company reported underwhelming first-quarter 2025 results. Its revenue missed significantly, and its EBITDA fell short of Wall Street's estimates. Sales fell modestly, and operating income declined by a wider margin as the business was hit by slow demand in new housing and overseas markets. Overall, this was a weaker quarter.

Investors who bought $1,000 worth of Watsco’s shares 5 years ago would now be looking at an investment worth $1,539.

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