Updated 2/23/26
Pool Corporation might not be the first name that comes to mind when you think about strong dividend stocks, but it probably should be. This Louisiana-based company is the world’s largest distributor of swimming pool supplies, equipment, and outdoor living products. From pool pumps and filters to chemicals and patio furnishings, POOL quietly dominates a niche that continues to grow.
Having been around since the early ’90s, the company has built a steady, reliable business that supports homeowners, contractors, and commercial clients alike. While it doesn’t generate headlines like tech giants or meme stocks, PoolCorp has built a strong reputation among long-term investors—especially those who appreciate rising dividends and a resilient business model.
Let’s dig in and see how it stacks up from a dividend investor’s perspective.
Key Dividend Metrics
🟢 Forward Dividend Yield: 2.23%
💵 Annual Dividend (Forward): $5.00 per share
🔁 5-Year Dividend Growth Rate: ~15%
🔒 Payout Ratio: 44.67%
📈 Consecutive Years of Dividend Growth: 14
📅 Last Dividend Payment: $1.25 per share
💳 Most Recent Pay Date: November 12, 2025
📉 5-Year Average Dividend Yield: ~0.96%
Recent Events
The past year has been a difficult one for PoolCorp shareholders. The stock has been punished hard, falling from a 52-week high of $374.74 all the way to its current price of $218.50—a decline that has shaved more than 40% off the share price from peak levels. The stock is now trading near the bottom of its 52-week range, with the low sitting at $211.56. That kind of drawdown commands attention, even for long-term investors who typically tune out short-term noise.
Revenue came in at approximately $5.29 billion, and net income settled at $404.4 million. While those aren’t catastrophic figures, they reflect a business that continues to normalize after the pandemic-era boom in backyard spending. Free cash flow moderated to just under $203 million, a meaningful step down from prior levels that signals management will need to remain disciplined on capital allocation. The silver lining is that the company raised its quarterly dividend to $1.25 per share in May 2025—confirming that even against a softer backdrop, the commitment to growing shareholder income remains intact.
Dividend Overview
PoolCorp’s dividend yield of 2.23% may not grab headlines, but in the context of this company’s history, it represents one of the more attractive entry points income investors have seen in years. The five-year average yield sits near 0.96%, which means today’s yield is more than double the historical norm. That kind of divergence typically only happens when a stock has sold off meaningfully—and in this case, it has.
The company recently moved its quarterly dividend to $1.25 per share, pushing the annualized payout to $5.00. With 14 consecutive years of dividend growth now on the books, PoolCorp has quietly earned a place among the more dependable dividend growers in the industrial distribution space. The payout ratio of 44.67% is modest enough to provide a comfortable cushion, and the 33.06% return on equity confirms that management continues to run a capital-efficient operation. This isn’t a stock you buy for a fat yield today—it’s a stock you buy for what that yield could look like five or ten years from now.
Dividend Growth and Safety
Walking through the recent dividend history tells a clear story. PoolCorp paid $1.00 per quarter in early 2023, stepped up to $1.10 by mid-2023, and held there through early 2025 before raising again to $1.25 in May 2025. That’s a 25% increase in the quarterly payout over roughly two years—solid, consistent execution even as the business faced revenue and earnings headwinds.
From a safety perspective, the dividend looks well-supported. The payout ratio of 44.67% against trailing EPS of $10.97 leaves meaningful room for continued growth or a buffer in a downside scenario. Return on assets of 10.37% and return on equity north of 33% demonstrate that this is a business generating real economic value, not just coasting on past success. Operating cash flow came in at $365.8 million, which comfortably covers the dividend obligation. Free cash flow is tighter at $202.9 million, but still sufficient to fund the current payout with room to spare. The dividend is not at risk—and given management’s 14-year streak, there’s no reason to expect that changes anytime soon.
Analyst Ratings
With the stock down sharply from its highs, analyst sentiment on Pool Corporation has shifted noticeably more cautious heading into 2026. The consensus view among covering analysts reflects a company whose near-term fundamentals are under pressure, even if the longer-term thesis around pool industry dominance remains largely intact.
Price targets that were clustered in the $350–$415 range through much of 2024 and early 2025 have been revised lower across the board, with many analysts now publishing targets in the $260–$310 range. The primary concerns cited include softer-than-expected consumer spending on discretionary outdoor upgrades, a sluggish housing market that has curtailed new pool construction, and the normalization of demand following the pandemic-era surge. Even at revised targets, most analysts maintain neutral or hold-equivalent ratings rather than outright sell calls, reflecting the view that POOL’s competitive position remains structurally intact.
At the current price of $218.50, the stock is trading below even the more conservative near-term price targets on the Street, which suggests the market may have already priced in a significant portion of the bad news. Analysts are watching for any signs of stabilization in housing activity or consumer confidence as potential catalysts that could reverse the stock’s slide. Until that clarity emerges, the analyst community appears content to sit on the sidelines and wait for a more definitive inflection.
Earning Report Summary
PoolCorp’s most recent full-year results captured a business that is clearly working through a difficult demand environment. Full-year revenue landed at $5.29 billion, reflecting the ongoing normalization in pool and outdoor living spending that has weighed on results for several reporting periods now. Net income of $404.4 million and EPS of $10.97 tell the story of a company that remains profitable but is operating well below the peak earnings it generated during the pandemic-fueled spending boom.
Profit margins came in at 7.68%, which is respectable for a distribution-focused business but does represent compression from prior highs. Operating cash flow of $365.8 million was solid enough to cover dividends and basic capital expenditures, though free cash flow of $202.9 million was tighter than investors have grown accustomed to seeing from this company. Return on equity of 33.06% and return on assets of 10.37% remain standout metrics—these are the numbers that remind you why POOL commands a premium multiple even when the top line is soft.
The key question heading into fiscal 2026 is whether revenue has found a floor. Management has consistently pointed to the installed base of existing pools—which still require regular chemical treatments, equipment maintenance, and repairs regardless of the broader economy—as a stabilizing factor. That non-discretionary slice of the business provides a floor beneath earnings that pure new-construction exposure would not. Still, until housing activity picks up and consumers feel confident enough to invest in major backyard projects again, meaningful earnings growth is likely to remain elusive in the near term.
Financial Health and Stability
PoolCorp’s balance sheet remains functional, though it warrants a careful look given the current earnings environment. The company carries a price-to-book ratio of 6.78x against a book value per share of $32.22, which reflects the asset-light, high-return nature of the distribution model. Leverage has historically been manageable for a business with predictable recurring cash flows, and that remains the case here.
The profit margin of 7.68% is solid for a distributor, and the 33% return on equity signals that the business continues to generate strong returns on the capital deployed within it. Short interest stands at approximately 3.43 million shares, which is notable but not alarming in the context of the overall float. It does suggest a segment of the market remains skeptical of a near-term recovery, which is worth monitoring. Overall, PoolCorp’s financial foundation remains sound enough to support the dividend, fund operations, and weather an extended period of below-trend demand without a crisis-level response being necessary.
Valuation and Stock Performance
At $218.50, POOL is trading near the low end of its 52-week range of $211.56 to $374.74, and the valuation picture is more interesting than it has been in years. The trailing P/E of 19.92x is the lowest multiple this stock has carried in quite some time, reflecting both the earnings compression and the broader market repricing of consumer-exposed industrial distributors. For a company that historically traded at 30x or higher, the current multiple suggests the market has moved from pricing in perfection to pricing in genuine uncertainty.
Price-to-book of 6.78x is elevated on an absolute basis but consistent with a business that generates 33% returns on equity—book value understates the earnings power here. The market cap of approximately $8.15 billion puts the stock at roughly 1.54x trailing revenue, which is a reasonable starting point for a distribution business with this kind of competitive moat. Beta of 1.23 is a reminder that POOL can move more sharply than the broader market in both directions, which matters for investors sizing a position. For dividend growth investors with a three-to-five year horizon, this price level offers a meaningfully better entry than anything available over the past two years, and the 2.23% yield—more than double the historical average—adds a real income component to the total return equation while you wait for the business to recover.
Risks and Considerations
PoolCorp’s fortunes are closely tied to housing market activity, consumer confidence, and discretionary spending on home improvement—three areas that have all faced meaningful headwinds over the past year. In a high-interest-rate environment, new pool construction is one of the easier large expenses for homeowners to defer, and the results have reflected exactly that dynamic. Until mortgage rates ease and housing turnover picks up, new pool starts are likely to remain subdued.
The stock’s steep decline from its 52-week high also raises the question of whether further downside is possible. At a P/E near 20x, the valuation has compressed substantially, but earnings themselves could decline further if the demand environment deteriorates beyond current expectations. Free cash flow of $202.9 million is adequate to cover the dividend but does not leave a great deal of room for error, meaning any further earnings pressure would tighten that cushion. Seasonality remains a structural feature of the business—the majority of revenues and profits are generated in the warmer months, creating inherent lumpiness in quarterly results that can exaggerate both positive and negative headlines. Finally, with short interest at 3.43 million shares, the market is telling you that a meaningful cohort of investors see continued risk ahead, and that perspective deserves respect even if you ultimately disagree with it.
Final Thoughts
PoolCorp is going through a rough patch, and the stock price makes no effort to hide it. But beneath the surface of a difficult 12 months, the core of what makes this business compelling for dividend investors remains very much intact. Fourteen consecutive years of dividend growth, a payout ratio below 45%, a 33% return on equity, and an unmatched position in pool distribution don’t disappear because the housing market slows down for a couple of years.
The dividend has continued to grow—$1.25 per quarter is the current rate, up from $1.00 just three years ago—and there’s no credible threat to that streak based on current cash flow generation. At $218.50, investors are getting a 2.23% yield, a sub-20x earnings multiple, and an entry point that is dramatically more attractive than what has been available for most of the past five years. For dividend growth investors who have the patience to wait for the housing cycle to turn, POOL at current levels is a story worth taking seriously. It’s not a screaming buy with no risk—the near-term headwinds are real—but for a portfolio built around compounding income over time, this is exactly the kind of durable franchise that rewards patient capital.