COVINGTON, La. - Pool (NASDAQ:POOL) Corporation (NASDAQ:POOL), the world's largest wholesale distributor of swimming pool and related backyard products, has expanded its share repurchase program to $600 million, the company announced today. This increase adds $316.2 million to the existing authorization, which had $283.8 million remaining for the buyback of its common stock in the open market.
In conjunction with the buyback program, which will continue at the discretion of the Board of Directors, Pool Corporation has 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 dividend is set to be paid on May 30, 2024, to shareholders of record as of May 16, 2024.
John Stokely, Chairman of the Board, highlighted the company's history of increasing dividends, marking the 19th increase since 2004. He emphasized the company's commitment to shareholder returns and future growth.
The announcement coincided with Pool Corporation's Annual Meeting of Stockholders, where stockholders elected eight directors to serve for the upcoming year and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the 2024 fiscal year. Moreover, the compensation of the company's named executive officers was approved.
The company, which operates approximately 440 sales centers across North America, Europe, and Australia, distributes over 200,000 products to about 125,000 wholesale customers.
This news is based on a press release statement and does not contain any speculative information or endorsement of the company's claims. The forward-looking statements included in the company's announcement are subject to various risks and uncertainties, and actual results may differ materially. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
InvestingPro Insights
As Pool Corporation (NASDAQ:POOL) announces its expanded share repurchase program and increased quarterly dividend, investors might be curious about the company's financial stability and future prospects.
According to InvestingPro data, Pool Corporation boasts a market capitalization of $13.78 billion and maintains a P/E ratio of 28.35, reflecting investors' willingness to pay a premium for the company's earnings. This valuation is supported by a robust gross profit margin of 29.86% over the last twelve months as of Q1 2024, indicating efficient operations and a strong market position.
InvestingPro Tips reveal that Pool Corporation has a history of rewarding shareholders, having raised its dividend for 13 consecutive years and maintained dividend payments for 21 consecutive years. This consistent track record is a testament to the company's financial health and its management's confidence in sustaining growth.
Moreover, the company is praised for operating with a moderate level of debt and for having liquid assets that exceed short-term obligations, suggesting a solid financial footing for navigating economic fluctuations.
While the company is trading at a high EBITDA valuation multiple of 27.67 and a high Price/Book multiple of 10.24, indicating a premium market valuation, analysts remain optimistic about the company's profitability. With 8 analysts revising their earnings downwards for the upcoming period, it may be a signal for investors to watch for potential adjustments in future performance expectations.
For those interested in a deeper analysis, InvestingPro offers additional insights on Pool Corporation, including more InvestingPro Tips to guide investment decisions. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With the next earnings date set for July 18, 2024, investors have time to explore these tips and data points to inform their investment strategies.
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