POOL Announces $1.25 Dividend on August 14: What to Expect on the Ex-Dividend Date

Introduction

Pool Corp. (POOL), a leading distributor of swimming pool and spa supplies, has announced a cash dividend of $1.25 per share, with an ex-dividend date set for August 14, 2025. This consistent payout reinforces the company's strong cash flow generation and confidence in its financial position. The $1.25 dividend places POOL among high-yield industrial and consumer goods sector stocks, aligning with its reputation for rewarding shareholders through regular dividends.

Recent market dynamics have shown a preference for stable income-producing assets, and POOL’s strong earnings performance has attracted both long-term and income-focused investors. With the ex-dividend date fast approaching, investors are keen to understand the likely impact on the stock price and whether this represents an opportunity or caution point.

Dividend Overview and Context

Understanding key dividend terms is essential for any investor tracking POOL’s upcoming payout:

• Cash Dividend (DPS): $1.25 per share
• Ex-Dividend Date: August 14, 2025
• Record Date: Not provided
• Payout Date: Not provided

The ex-dividend date marks the first trading day where new buyers will not be entitled to the dividend. Historically, shares often trade at a slight discount on the ex-date as the value of the stock adjusts for the payout. For POOL, this adjustment is expected to be minimal, supported by strong earnings performance and consistent dividend policy.

Backtest Analysis

The backtest reviewed POOL's historical behavior around dividend dates, covering 11 past dividend events. The results reveal:

• Dividend Recovery Duration: An average of just 0.1 days
• 15-Day Recovery Probability: 91%

This means that, in most cases, the stock has rebounded from the ex-dividend price drop within a day, with a high likelihood of recovering full value within two weeks. These metrics suggest strong market confidence in POOL’s fundamentals and indicate that dividend payouts do not significantly disrupt its stock price trajectory.

Driver Analysis and Implications

POOL’s ability to sustain a high dividend is supported by robust earnings and operating performance. According to the latest financial report:

• Net Income: $271.32 million
• Total Revenue: $2.89 billion
• Basic EPS: $7.07

With operating income of $380.20 million and operating expenses at $488.50 million, the company maintains strong profitability. Its consistent earnings and high return on invested capital (not provided but implied by strong EBIT) support a durable dividend policy. These fundamentals position POOL well in a macroeconomic environment where high-quality earnings and stable cash flows remain attractive to investors.

Investment Strategies and Recommendations

For investors, the upcoming dividend date presents two primary strategies:

• Short-Term Strategy: Investors may consider selling shortly before the ex-dividend date to avoid the price adjustment, but given POOL’s historical rebound speed, this is generally less advantageous. Holding through the date often results in minimal or no downside.
• Long-Term Strategy: Investors focused on income or growth should continue to hold POOL shares. The company’s strong earnings, consistent payouts, and rapid post-dividend price recovery make it a solid inclusion in long-term, high-yield portfolios.

Conclusion & Outlook

POOL’s $1.25 per share dividend, coupled with its strong financials and high dividend recovery probability, supports a confident outlook for both the ex-dividend date and the broader investment horizon. Investors can expect minimal price impact and a swift rebound. With upcoming earnings and dividend announcements likely in the coming months, POOL remains a key stock to watch for both income and capital appreciation.