Pool Corp. Offers 2.1% Dividend Yield with Strong Long-Term Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Should l Buy POOL?
Source: Fool
- Attractive Dividend: Pool Corp. boasts a 2.1% dividend yield, surpassing the S&P 500's 1.1% and NASDAQ 100's 0.6%, with a payout ratio of only 45%, providing ample room for future dividend growth.
- Sales Recovery: Despite a 4% year-over-year decline in 2024 sales to approximately $5.3 billion, both Q2 and Q3 of 2025 saw a 1% year-over-year sales increase, indicating improving business trends.
- Strong Cash Flow: For the nine months ending September 30, Pool Corp. generated about $286 million in operating cash flow, while dividends paid during this period were only $139 million, demonstrating sufficient cash flow to support dividend payments.
- Optimistic Market Outlook: With improving permit data and easier year-over-year comparisons, Pool Corp. is expected to see further acceleration in business growth throughout 2026, despite risks from the housing market and rising interest rates.
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Analyst Views on POOL
Wall Street analysts forecast POOL stock price to rise
10 Analyst Rating
3 Buy
6 Hold
1 Sell
Hold
Current: 269.560
Low
240.00
Averages
304.29
High
360.00
Current: 269.560
Low
240.00
Averages
304.29
High
360.00
About POOL
Pool Corporation is a wholesale distributor of swimming pool supplies, equipment, and related leisure products. The Company also distributes irrigation and landscape products in the United States. The Company operates approximately 448 sales centers in North America, Europe, and Australia through its five distribution networks: SCP Distributors (SCP), Superior Pool Products (Superior), Horizon Distributors (Horizon), National Pool Tile (NPT), and Sun Wholesale Supply (Sun Wholesale). The Company distributes swimming pool supplies, equipment, and related leisure products domestically through its SCP and Superior sales center networks through SCP network. Its Horizon sales centers offer organic fertilizers, organic pesticides, and irrigation and drainage products that reduce water usage and soil erosion. Sun Wholesale distributes swimming pool supplies, equipment, and related leisure products, primarily servicing independently owned and operated Pinch A Penny, Inc. franchise locations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
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Pool Corporation: Stable Dividends and Growth Potential
- Performance Growth: Pool Corporation achieved approximately $1.5 billion in sales and $127 million in net income in Q3 2025, demonstrating its profitability in the current economic environment, despite overall revenue growth being only 1%.
- Dividend Appeal: The company currently offers a dividend yield of 1.9%, and its payout ratio of 45% provides ample room for future dividend growth, attracting investors seeking stable returns.
- Market Outlook: Despite challenges from high interest rates, over 60% of Pool's sales come from non-discretionary segments, allowing it to maintain stability during economic fluctuations, with potential for accelerated sales growth in the future.
- Share Buybacks: In the first nine months of 2025, Pool repurchased $164 million worth of shares, further enhancing shareholder returns and reflecting a proactive approach to capital management.
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Pool Corporation: Stable Dividends and Growth Potential
- Sales Growth Outlook: While sales growth remains soft, Pool Corporation is expected to accelerate in 2026 and beyond, particularly if interest rates decline, with over 60% of its sales coming from non-discretionary segments, providing stability.
- Profitability Performance: In Q3 2025, Pool Corporation achieved approximately $1.5 billion in sales with a net income of $127 million, demonstrating resilience in profitability amid current economic pressures, contrasting with broader market challenges.
- Dividend Appeal: With a current dividend yield of 1.9% and a payout ratio of 45%, Pool Corporation offers ample room for future dividend growth, making it attractive to investors seeking stable returns.
- Share Buyback Strategy: Pool Corporation repurchased $164 million worth of shares in the first nine months of 2025, reflecting a commitment to returning capital to shareholders and boosting market confidence in a company valued at $9.8 billion.
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Pool Corp. Reports Increased Q4 Earnings
- Earnings Growth: Pool Corp. reported a net income of $70.20 million for Q4, translating to an EPS of $0.15, which marks a significant increase from last year's $56.83 million and $0.13 EPS, indicating strong performance in the market.
- Revenue Increase: The company's revenue surged by 21.7% year-over-year to $1.566 billion, up from $1.287 billion last year, demonstrating robust growth in sales and market demand.
- Market Performance: This increase in earnings and revenue not only boosts investor confidence but may also drive the company's stock price higher, enhancing its competitive position in the industry and solidifying market share.
- Future Outlook: With ongoing operational optimizations and market expansions, the company is expected to maintain its growth momentum in the coming quarters, attracting more investor interest in its long-term development potential.
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- Pool Corp.'s Growth Potential: A $1,000 investment can buy around three shares of Pool Corp., which has a dividend yield of about 2%; its business model relies on pool maintenance, providing a stable revenue stream as each new pool built expands its customer base.
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- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
Pool Corporation: Stable Dividends and Growth Potential
- Performance Growth: Pool Corporation achieved approximately $1.5 billion in sales and $127 million in net income in Q3 2025, demonstrating its profitability in the current economic environment, despite overall revenue growth being only 1%.
- Dividend Appeal: The company currently offers a dividend yield of 1.9%, and its payout ratio of 45% provides ample room for future dividend growth, attracting investors seeking stable returns.
- Market Outlook: Despite challenges from high interest rates, over 60% of Pool's sales come from non-discretionary segments, allowing it to maintain stability during economic fluctuations, with potential for accelerated sales growth in the future.
- Share Buybacks: In the first nine months of 2025, Pool repurchased $164 million worth of shares, further enhancing shareholder returns and reflecting a proactive approach to capital management.
See More
Pool Corporation: Stable Dividends and Growth Potential
- Sales Growth Outlook: While sales growth remains soft, Pool Corporation is expected to accelerate in 2026 and beyond, particularly if interest rates decline, with over 60% of its sales coming from non-discretionary segments, providing stability.
- Profitability Performance: In Q3 2025, Pool Corporation achieved approximately $1.5 billion in sales with a net income of $127 million, demonstrating resilience in profitability amid current economic pressures, contrasting with broader market challenges.
- Dividend Appeal: With a current dividend yield of 1.9% and a payout ratio of 45%, Pool Corporation offers ample room for future dividend growth, making it attractive to investors seeking stable returns.
- Share Buyback Strategy: Pool Corporation repurchased $164 million worth of shares in the first nine months of 2025, reflecting a commitment to returning capital to shareholders and boosting market confidence in a company valued at $9.8 billion.
See More
Pool Corp. Reports Increased Q4 Earnings
- Earnings Growth: Pool Corp. reported a net income of $70.20 million for Q4, translating to an EPS of $0.15, which marks a significant increase from last year's $56.83 million and $0.13 EPS, indicating strong performance in the market.
- Revenue Increase: The company's revenue surged by 21.7% year-over-year to $1.566 billion, up from $1.287 billion last year, demonstrating robust growth in sales and market demand.
- Market Performance: This increase in earnings and revenue not only boosts investor confidence but may also drive the company's stock price higher, enhancing its competitive position in the industry and solidifying market share.
- Future Outlook: With ongoing operational optimizations and market expansions, the company is expected to maintain its growth momentum in the coming quarters, attracting more investor interest in its long-term development potential.
See More
Wedgewood Partners Fund Reports 1.8% Loss in Q4 2025, Underperforming Major Indices
- Fund Underperformance: Wedgewood Partners Fund reported a 1.8% loss in Q4 2025, significantly trailing the Russell 1000 Growth Index and S&P 500, which gained 1.1% and 2.7%, respectively, indicating a competitive disadvantage in the market.
- New Investment Positions: During the same quarter, the fund established new positions in Amazon (NASDAQ:AMZN) and Chubb (NYSE:CB), reflecting a positive outlook on their growth potential in the evolving market landscape.
- Asset Disposal Strategy: The fund sold its investment in Pool (NASDAQ:POOL) in Q4 2025, likely to reallocate assets in response to market dynamics and optimize its investment portfolio.
- Market Environment Insight: In the context of a K-shaped economy, an increase in online shopping is anticipated, positioning Amazon as an attractive long-term investment opportunity, while Chubb maintains its status as a global leader in the property and casualty insurance sector, showcasing its competitive strength.
See More
Buffett Steps Down, Abel Likely to Retain CVX, KO, and POOL Stocks
- Chevron's Stable Returns: A $1,000 investment buys approximately six shares of Chevron, with a current dividend yield of 4.2%, significantly higher than the average energy stock's 3.3%, demonstrating its ability to consistently reward investors amid market volatility.
- Coca-Cola's Strong Growth: Investing $1,000 allows for the purchase of about 14 shares of Coca-Cola, which, despite market challenges, achieved a 6% organic sales growth in Q3, up from 5% in Q2, showcasing its leadership and brand strength in the consumer staples sector.
- Pool Corp.'s Growth Potential: A $1,000 investment can buy around three shares of Pool Corp., which has a dividend yield of about 2%; its business model relies on pool maintenance, providing a stable revenue stream as each new pool built expands its customer base.
- Buffett's Legacy Continues: Chevron, Coca-Cola, and Pool Corp. are all remnants of Buffett's era, and with Abel as the new CEO, these stocks are likely to remain in the portfolio, reducing the risk of being sold off.
See More
