) recently announced its decision to hike its quarterly dividend by
2 cents to 16 cents per share. This translates into a 14.0%
increase from the prior dividend. The increased dividend will be
paid on May 30, 2012, to stockholders of record on May 14.
This represents the seventh dividend increase by Pool since its
inception in 2004 and brings the forward annual dividend yield as
of May 10, 2012, to 1.77%. The current hike comes exactly after a
year. The company had last increased its dividend, in May 2011,
from 13 cents to 14 cents, which was paid on June 1, 2011 along
with an authorization of $100 million share repurchase.
Pool has also stepped up shareholder value through a share
buyback program. During the first quarter of 2012, Pool repurchased
24,274 shares at an average price of $35.98 per share. After the
end of the quarter, the company further bought back 50,400
incremental shares at an average price of $35.92 bringing the total
shares available for repurchase to $65.5 million.
Headquartered in Covington, Louisiana Pool Corporation is the
largest wholesale distributor of swimming pool and related backyard
products. Currently, it operates 293 sales centers in North America
and Europe. The company has a consistent track record of paying
At the end of first quarter 2012, cash and cash equivalents
increased substantially year over year to $20.7 million. Total
long-term debt was $299.0 million versus $180.2 million in the
We appreciate Pool's efforts to consistently enhance long-term
shareholder value even in times of an economic downturn. We believe
that an increase in dividend payment affirms the company's
optimistic outlook and depicts that it is heading toward strong
future growth. Management believes that with rational recovery in
macro economy, earnings per share will increase at the rate of 20%
per year which we believe could call for further increases in
Pool, which competes with the likes of
Polaris Industries Inc.
), currently retains a Zacks #2 Rank, implying a short-term "Buy"
recommendation for the stock. We are also maintaining our long-term
Outperform recommendation on the stock.
BRUNSWICK CORP (BC): Free Stock Analysis Report
POLARIS INDUS (PII): Free Stock Analysis Report
POOL CORP (POOL): Free Stock Analysis Report
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