1. Pool Corporation (NASDAQ:POOL)
5-Year Average Annual Dividend Growth Rate: 21.76%
Years of Consistent Dividend Growth: 11
Pool Corporation (NASDAQ:POOL) is one of the world’s largest distributors of swimming pool supplies and outdoor living products. The company pays a quarterly dividend of $1.00 per share and has a dividend yield of 1.04%, as of February 1. It has raised its dividend at an annual average rate of 21.76% in the past five years, which makes it one of the best dividend growth stocks. Moreover, the company also holds an 11-year streak of consistent dividend growth.
KeyBanc raised its price target on Pool Corporation (NASDAQ:POOL) to $387 with an Overweight rating on the shares. The firm sees ‘compelling entry points’ into an attractive long-term industry.
The number of hedge funds tracked by Insider Monkey owning stakes in Pool Corporation (NASDAQ:POOL) stood at 42 in Q3 2022, up from 40 in the previous quarter. The collective value of these stakes is nearly $1.3 billion.
Baron Funds mentioned Pool Corporation (NASDAQ:POOL) in its Q3 2022 investor letter. Here is what the firm has to say:
“Pool Corporation (NASDAQ:POOL) is the world’s largest distributor of swimming pool supplies, equipment, and related leisure products and is also one of the top three distributors of irrigation and landscape suppliers in the U.S. The company sells over 200,000 products from over 2,200 suppliers to over 120,000 professional contract and retailer customers through its 400-plus sales centers across 12 countries, with 70% of its transactions occurring in person. Within its core pool category, Pool has strong market share and is bigger than its next fifty competitors combined, giving Pool a strong scale advantage and allowing the company to invest in its products, technology, customer service, and supply chain to differentiate itself. Over 60% of Pool’s revenues come from maintenance and repair of existing pools, providing Pool with a large and growing recurring revenue base as more pools are built each year.
Pool has a long history of delivering organic and inorganic growth supported by the recurring nature of most of its revenues while consistently taking market share each year. We believe management will continue to deliver on its growth targets as the company today benefits from favorable U.S. population migration trends and demographic shifts (de-urbanization, southern migration), an aging pool installed base, an increasing number of new features, and technology content both in and around the pool. Pool also recently acquired Porpoise Pool & Patio, which includes a retail store franchise business and chemical packaging operation, enabling new sales and margin growth opportunities for the business.
As the stock sold off on fears of a housing-related slowdown in the pool industry, we accumulated additional shares of this best-in-class company as we believe the current share price is attractive relative to the long-term growth opportunity and value of the business.”
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