Yahoo Finance Pool Corp's Dividend Analysis
Insights into Pool Corp's Upcoming Dividend Payment
Pool Corp (NASDAQ:POOL) recently announced a dividend of $1.1 per share, payable on 2024-03-28, with the ex-dividend date set for 2024-03-13. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Pool Corp's dividend performance and assess its sustainability.
What Does Pool Corp Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Pool Corp distributes swimming pool supplies and related products. It sells national-brand and private-label products to approximately 120,000 customers. The products include non-discretionary pool-maintenance products, like chemicals and replacement parts, as well as pool equipment, like packaged pools (kits to build swimming pools), cleaners, filters, heaters, pumps, and lights. Customers include pool builders and remodelers, independent retail stores, and pool repair and service companies.
A Glimpse at Pool Corp's Dividend History
Pool Corp has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis. Pool Corp has increased its dividend each year since 2004, earning the status of a dividend achiever, a title bestowed upon companies that have raised their dividend annually for at least the past 20 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Pool Corp's Dividend Yield and Growth
As of today, Pool Corp currently has a 12-month trailing dividend yield of 1.06% and a 12-month forward dividend yield of 1.08%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Pool Corp's annual dividend growth rate was 23.40%. Extended to a five-year horizon, this rate decreased to 20.80% per year. And over the past decade, Pool Corp's annual dividends per share growth rate stands at an impressive 19.80%.
Based on Pool Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Pool Corp stock as of today is approximately 2.73%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Pool Corp's dividend payout ratio is 0.32.
Pool Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Pool Corp's profitability 10 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Pool Corp's growth rank of 10 out of 10 suggests that the company's growth trajectory is strong relative to its competitors.
Revenue is the lifeblood of any company, and Pool Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Pool Corp's revenue has increased by approximately 13.80% per year on average, a rate that outperforms approximately 69.5% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Pool Corp's earnings increased by approximately 16.10% per year on average, a rate that outperforms approximately 41.03% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 25.80%, which outperforms approximately 82.56% of global competitors, further underscores the company's strong financial health and growth prospects.
Next Steps
Considering Pool Corp's consistent dividend payments, robust dividend growth rate, prudent payout ratio, strong profitability, and solid growth metrics, the company presents itself as a potentially attractive option for value investors focused on dividend income. The data suggests that Pool Corp is not only rewarding shareholders with regular dividends but is also positioning itself for sustainable growth. As investors consider Pool Corp for their portfolios, they may find themselves asking: Will Pool Corp continue to provide a steady stream of income in the years to come?
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
