1 High-Yield Dividend Stock to Buy Right Now

Heating, ventilation, air-conditioning, and refrigeration (HVACR) equipment and parts distributor Watsco (NYSE: WSO) is a business with a balance sheet built to withstand a recession. Better yet, it's a company with a business model built to actually come out of a recession in stronger shape then when it entered into it. Throw in a 4.4% dividend yield and there's a lot to like about the company. Here's the lowdown.

To understand why Watsco is an attractive stock in a downturn, you have to understand its business. The company is the leading player in the highly fragmented market for HVACR distribution. Management estimates there are more than two-thousand distributors, with its nearest competitor being Johnstone Supply.

For an idea of Watsco's leading position in the market, consider that Johnstone Supply passed the $2 billion in sales mark in 2017, compared to Watsco's $4.8 billion in 2019. Watsco also competes with original equipment manufacturers (OEM) that also have distribution companies in some markets.

Source Fool.com