HVAC distributor Watsco ( WSO) may not have the most exciting business, but the firm does have a solid track record for generating cash and passing it onto shareholders. For dividend investors, cash generation capabilities trump exciting product lines any day. Watsco generates the lion's share of its revenue by selling replacement heating and cooling systems to homeowners, a business that's heavily correlated with the housing market. Now surprisingly, that connection has made investors anxious about this stock in the last few years. But the bear scenario for Watsco hasn't played out. The firm has actually seen substantial revenue growth in the last several years, its saving grace likely being tied to the fact that around 70% of sales come from existing construction. Last week, management announced a 9% dividend hike, bringing the firm's payout to a quarterly 62 cents. That's a 3.64% dividend yield at current price levels. Watsco is one of TheStreet Ratings' top-rated industrial distributors stocks, with a B+ buy rating.