Pool Corporation strengthens share buyback program, raises dividend

COVINGTON, La. – Pool (NASDAQ:) Corporation (NASDAQ: POOL), the world's largest wholesale distributor of swimming pools and related backyard products, announced today that it has expanded its stock repurchase program to $600 million. The increase adds $316.2 million to existing authorization, including $283.8 million to repurchase its common stock in the open market.

In conjunction with the continuation of the repurchase program at the discretion of the Board of Directors, Pool Corporation declared a quarterly cash dividend of $1.20 per share. This represents a 9% increase from the previous dividend of $1.10 per share. The shares are scheduled to be paid out on May 30, 2024 to shareholders of record as of May 16, 2024.

Board Chairman John Stokely highlighted the company's history of increasing dividends, its 19th since 2004.

The announcement coincided with Pool Corporation's annual meeting of shareholders, at which shareholders elected eight directors to serve for the coming year and approved the appointment of Ernst & Young LLP as the independent registered public accounting firm for fiscal 2024. In addition, the compensation of designated senior executives of the company was also approved.

The company operates approximately 440 sales centers in North America, Europe and Australia and distributes more than 200,000 products to approximately 125,000 wholesale customers.

This information is based on a press release statement and does not contain any speculative information or endorsement of the company's statements. Forward-looking statements contained in the Company's announcements are subject to various risks and uncertainties, and actual results may differ materially. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

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Investment Professional Insights

With Poole Corporation (NASDAQ: POOL ) announcing an expansion of its stock buyback program and an increase in its quarterly dividend, investors may be curious about the company's financial stability and future prospects.

According to InvestingPro, Pool Corporation has a market value of $13.78 billion and a price-to-earnings ratio of 28.35, reflecting investors' willingness to pay a premium for the company's earnings. This valuation is supported by a high gross profit margin of 29.86% for the trailing 12 months to the first quarter of 2024, indicating efficient operations and a strong market position.

InvestingPro Tips shows that Pool Corporation has a history of rewarding shareholders, having raised dividends for 13 consecutive years and maintained dividend payments for 21 consecutive years. This consistent performance record is a testament to the company's financial health and its management's confidence in continued growth.

Additionally, the company was praised for operating with modest debt levels and having liquid assets that exceed short-term debt, suggesting it has a solid financial foundation to weather economic fluctuations.

Although the company's EBITDA valuation multiple is as high as 27.67 and its price-to-book multiple is as high as 10.24, indicating a relatively high market valuation, analysts are still optimistic about the company's profitability. Eight analysts have lowered earnings for the coming period, which may be a signal that investors are paying attention to potential adjustments to future performance expectations.

For those interested in a more in-depth analysis, InvestingPro provides additional insights on Pool Corporation, including more InvestingPro tips to guide investment decisions.Use coupon code PRONEWS24, readers can receive an additional 10% discount for annual or bi-annual Pro and Pro+ subscriptions. With the next earnings date scheduled for July 18, 2024, investors have time to explore these tips and data points to inform their investment strategies.

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