Pool Corp's Dividend Analysis
Assessing Dividend Performance and Sustainability
Pool Corp (NASDAQ:POOL) recently announced a dividend of $1.1 per share, payable on 2023-11-22, with the ex-dividend date set for 2023-11-07. 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 delve 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. The company has increased its dividend each year since 2004, earning it the status of a dividend achiever, an honor given to companies that have increased their dividend each year for at least the past 19 years.
Breaking Down Pool Corp's Dividend Yield and Growth
As of today, Pool Corp currently has a 12-month trailing dividend yield of 1.25% and a 12-month forward dividend yield of 1.31%. 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 21.90%. Extended to a five-year horizon, this rate decreased to 21.00% per year. And over the past decade, Pool Corp's annual dividends per share growth rate stands at an impressive 19.40%.
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 2023-09-30, Pool Corp's dividend payout ratio is 0.30.
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 good 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 25.60% per year on average, a rate that outperforms approximately 89.29% of global competitors.
Next Steps
Based on Pool Corp's consistent dividend payments, impressive growth rate, sustainable payout ratio, and robust growth metrics, the company presents a promising investment opportunity for dividend investors. 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.
