Pool (POOL) DIvidends Date & History

Key Takeaways

• Pool Corporation offers a current dividend yield of approximately 2.4%, paid quarterly at $1.25 per share for an annual total of $5.00.
• The company has raised its dividend for 15 consecutive years, with a 5-year growth rate of about 16.7%.
• Payout ratio stands at around 45-46%, indicating strong earnings coverage for the dividend.
• Free cash flow comfortably covers dividends, supporting sustainability amid stable financials.
• Debt levels are manageable with a debt-to-equity ratio near 1.0 and solid interest coverage.
• Recent ex-dividend date was March 12, 2026, with payment on March 26, 2026.

Dividend Overview

Pool Corporation (POOL), the world's largest distributor of swimming pool supplies and related leisure products, maintains a consistent quarterly dividend policy. The current annual dividend is $5.00 per share, yielding approximately 2.4% based on recent stock prices. Quarterly payments of $1.25 per share were declared for 2026, with the most recent ex-dividend date on March 12, 2026, and payment on March 26, 2026. This positions POOL as a dividend growth stock rather than a high-yield play, appealing to investors seeking reliable income with moderate appreciation potential. The company's focus on maintenance-related sales provides recession-resistant cash flows, underpinning its dividend profile.

Dividend History and Growth

Pool Corporation initiated quarterly dividends in 2004 and has demonstrated remarkable consistency, increasing payouts annually for 15 consecutive years. Historical data shows steady progression: from $2.10 annually in 2019 to $4.95 in 2025, reflecting compound annual growth rates of 16.7% over five years and around 17% over longer periods. Recent hikes include a jump from $1.20 to $1.25 quarterly in early 2026. No cuts have occurred, aligning with the company's strategy of balancing shareholder returns through dividends and share repurchases while funding growth via acquisitions and organic expansion.

Dividend Sustainability and Payout Ratio

POOL's dividend sustainability is robust, with a payout ratio of 45-46% of earnings, leaving ample room for growth or reinvestment. In 2025, diluted EPS was $10.85, easily covering the $5.00 dividend. Free cash flow generation remains strong, covering dividends multiple times over despite cyclical sales tied to pool maintenance and new installations. Debt stands at about $1.2 billion, with a debt-to-equity ratio around 1.0-1.2 and interest coverage exceeding 12x, indicating low risk. Net cash from operations in recent years has exceeded net income by over 150%, bolstering the balance sheet and supporting ongoing payouts amid moderate leverage.

Dividend Compared to Industry Peers

In the distributors and leisure products sector, POOL's 2.4% yield is competitive. Peer UFP Industries (UFPI) yields about 1.6% with a shorter 5-year growth streak, while home improvement giant Home Depot (HD) offers 2.9% but a higher 65% payout ratio. Auto parts distributor Genuine Parts (GPC) yields around 3.3% as a Dividend King with 70 years of increases. Water products peer A. O. Smith (AOS) has a lower 1.8-2.0% yield. POOL stands out for its growth streak and balanced profile in a niche market with stable demand.

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Is This Stock Attractive for Dividend Investors?

Pool Corporation (POOL) suits dividend growth investors prioritizing consistent increases over high yields, given its 15-year streak and double-digit historical growth. Long-term holders may appreciate the stability from recurring pool maintenance revenue, which buffers economic cycles, alongside free cash flow supporting both dividends and buybacks. Conservative investors could find appeal in the sub-50% payout ratio and manageable debt, signaling low cut risk. However, the cyclical exposure to housing and weather-sensitive leisure spending introduces volatility, making it less ideal for pure income seekers chasing yields above 4%. Growth-oriented dividend investors might value POOL's market leadership and acquisition-driven expansion, though recent sales flatness warrants monitoring. Overall, it fits portfolios blending income reliability with moderate appreciation in the consumer discretionary space.

Disclaimer

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