Watsco declares special dividend of $5

MIAMI -- Heating and cooling company Watsco Inc. said Monday that its board declared a special cash dividend of $5, totaling about $172 million, and a regular quarterly cash dividend of 62 cents.

Both dividends will be paid on Oct. 31 to shareholders of record as of Oct. 15.

The company said it expects to continue to pay quarterly cash dividends, but on a more moderate basis beginning in 2013.

Albert Nahmad, Watsco's chairman CEO, said the special dividend shows management's confidence in the company and its continued ability to generate free cash flow.

Miami-based Watsco distributes heating and cooling systems, along with parts to repair them.

In morning trading, Watsco shares rose $1.21 to $77.