) recently authorized an additional stock repurchase program and
increased its dividend, thereby maintaining the trend of returning
wealth to its shareholders from time to time, depending on market
conditions. Share price of the company increased 2.3% in
Under this current share repurchase program, the company is
authorized to repurchase up to $100.0 million additional common
stock. Last year in November also, the company authorized share
buyback of $100.0 million. The share buyback authorization reflects
the company's confidence in its fundamentals.
At the same time, the share buyback will help the company to
reduce outstanding share count, thereby increasing earnings per
share and return on equity. The company has repurchased shares
worth $94.3 million, $77.0 million and $71.0 million in 2013, 2012
and 2011, respectively.
Apart from share buyback activity, there is a dividend
distribution program in place. The company increased its dividend
by 16% to 22 cents per share from 19 cents. This translates to an
annualized dividend of 88 cents per share.
The increased quarterly dividend is payable on Jun 4, 2014 to
stockholders of record as of May 21, 2014. Since 2004, the company
has raised its dividend nine times. The company last made an
increase of 19.0% in May 2013.
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 share buyback authorization and dividend
payment affirm the company's optimistic outlook and growth
Recently this Zacks Rank #3 (Hold) company posted mixed first
quarter 2014 results with earnings missing the Zacks Consensus
Estimate while revenues beating the same.
Other Stocks to Consider
Some better-ranked stocks in the leisure industry include
Malibu Boats, Inc.
Smith & Wesson Holding Corp.
Wynn Resorts Ltd.
). All these stocks carry a Zacks Rank #2
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MALIBU BOATS-A (MBUU): Free Stock Analysis
POOL CORP (POOL): Free Stock Analysis Report
SMITH & WESSON (SWHC): Free Stock Analysis
WYNN RESRTS LTD (WYNN): Free Stock Analysis
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