The S&P 500 ($SPX) has put up a decent but unexciting 8% gain so far in 2026, with most of the heavy lifting coming from a few big names. Dividend stocks are quietly doing more, and Watsco (WSO) is a good example of that shift. WSO stock is up 22% year-to-date (YTD) and still offers a forward dividend yield above 3%.
The macro backdrop makes that combo even more interesting. The Federal Reserve is holding the federal funds rate in the 3.5% to 3.75% range. Meanwhile, officials under new Fed Chair Kevin Warsh are signaling that more hikes are possible as inflation remains sticky.
