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| Air handling unit (AHU) (Photo credit: Wikipedia) |
Watsco
dividend machine for week of 9/24/2012
One
might think that a company in the HVAC business is no place to invest your
money with our housing market in the dumps.
Since I do not use current trends or even long term trends as selection
criteria for dividend machines, I did not let that influence my dividend
machine choice for this week. I leave that kind of input for you to use to
decide if you want to a particular dividend machine or not.
Last
year I found Watsco to be a dividend machine using my four key criteria. I was not thrilled with the industry, which
is heating, ventilation and air conditioning (HVAC), by design I had to include
Watsco in my 2011 dividend machine list.
This
year, Watsco (WSO) makes the grade again.
Since I have looked at this company over time, I have an even better
feeling for their business. I like
their performance from a product standpoint.
They meet the increasing need and market for energy efficiency.
The
table below presents Watsco’s four dividend machine criteria.
Watsco (WSO)
|
|
Price when profiled
|
$77.68
|
Last 4 Qtrs Earnings
|
$2.83
|
Last 4 Qtrs Dividend
|
$2.43
|
Current Dividend Yld
|
3.19%
|
No. of Years increased
|
10
|
Debt/Equity ratio
|
26.00%
|
Watsco
currently pays a dividend of $2.48 per share per year. The yield at today’s price of $77.68 is
3.19%. WSO has paid a dividend every
year since 1990 and has increased the dividend every year for ten years. Watsco is a responsible with leverage and
sports a debt to equity ratio (D/E) of .26.
WSO
has some calls but not that I liked well enough to profile today. However, since I profiled WSO in my 2011
dividend machine list, I was able to write a nice call. The call was not exercised and I still own
the WSO. These are the kinds of
companies that make income investing a good strategy even during times when everyone
thought you would never sell another air conditioner again until the housing
market recovered.
Check
out the links before to read other posts about WSO.
Very
Truly Yours,
TheMoneyMadam
