Watsco Delivers Robust 2023 Performance, Increases Annual Dividend by 10%

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Watsco has announced its financial results for the fourth quarter and full year ending December 31, 2023, along with insights into business trends, growth prospects, technological innovations, and financial stability.

Since initiating its distribution strategy in 1989, Watsco has cultivated the largest distribution network for HVAC/R products in North America, spanning 692 locations catering to over 125,000 contractors across the United States, Canada, Mexico, Puerto Rico, and Latin America. The company’s steadfast commitment to entrepreneurial spirit and growth-oriented culture has yielded impressive compounded annual growth rates (CAGRs) of sales and operating income at 15% and 18%, respectively, since its inception, demonstrating robust performance across various economic and industry cycles.

In a testament to its financial strength and continued confidence, Watsco’s Board of Directors has approved a 10% increase in its annual dividend, raising it to $10.80 per share effective from the next regular quarterly payment scheduled for April 2024. Notably, this marks the company’s 50th consecutive year of dividend payments, underscoring its enduring commitment to shareholders and the resilience of its balance sheet, which boasted net cash as of December 31, 2023. Positioned strongly, Watsco stands ready to capitalize on opportunities to further expand its presence in the estimated $60 billion North American HVAC/R distribution market.