Buy these exclusive dividend shares before it doesn’t work

• The heavy comparisons of Pandemic Highs hide the profitable pool corp. beauty.

• The decrease in the share price increased the yield of the pool supplier dividend.

• Pool Corp. Has shareholders a friendly capital return program.

• 10 shares we like better than pool ›

In a blurred market, as we have seen in 2025, dividend shares can give a portfolio stability. Regular payments of the quarter -dividend are very predictable, providing cash so that they can reinvest into other options and return the next cash. These features are attractive in any market, but especially during periods when stock prices are falling.

Of course, this does not mean that investors should wait for the bear market to buy such promotions. Indeed, market retractions usually occur when investors want forward time. Dividend stocks are not only more resistant to the market than growth campaigns, but also the cash flows they pay for investors also help to compensate for the pain of unrealized losses.

Given the uncertain environment where we are now, it may make sense for some investors to increase their portfolios with more dividend paid shares. The one who has recently taken the bruising and looks particularly attractive is Pool Corp. (Nasdaq: Pool)Supplier of pool maintenance and construction supplies. That is why you may want to consider adding it to your portfolio.

Pool Corp. The shares have so far fallen by about 11% by 2025. However, the downturn of the shares does not reflect the interrupted business, but only after the normalization of the historical boom. Both pandemic and low interest rates were created, and outdoor lifetime increased in 2020, 2021. And 2022. This led to the demand for swimming pools and the demand for secondary market products. Now that the industry is down from those unusual heights, the pool just retreats.

Income during the first 2025 The quarter decreased by 4% per year to $ 1.07 billion. However, the management noted that sales decreased by only 2%when the same sales days were compared, a quarter and last quarter. This corresponded to “the 2% decrease we saw in the fourth quarter of 2024, which had improved a consistent tendency compared to the previous 2024,” explained the leadership in the first quarter revenue permit.

The company noted that the sales of maintenance -related products supported the total sale, while the chemical volume increased by 1%, along with double digital chemical growth. Sales related to the new pool construction continued to consider the results.

Still, this business is far from struggling. Most of the pool revenue comes from maintenance and repair, not the construction of a new pool – meaning that the company has a stable, recurring demand base. In fact, about 60-65% of sales come from repetitive maintenance products such as chemicals, equipment and accessories.

In addition, the company remains very profitable. The general margin was 29.2%and the management repeated the guidelines of the year for 2025. Revenue per share from $ 11.10 to $ 11.60. Pool Corp. trades 27 times the middle point of this range of recommendations, which is based on an assessment of the dominant niche business with durable cash flows.

However, the true value is the ability of a company to return capital to shareholders, starting with the continuous growth of dividends. The pool dividends have grown by almost 20%over the last 10 years. Even when income has been temporarily decreased, the management retained its obligation to grow dividends in terms of long -term income power.

In addition to dividends, the pool indirectly returns the capital to shareholders during the redemption of shares. In fact, the company has announced an increase in the shares’s repurchase program to $ 600 million. This added about $ 309 million. USD at around $ 291 million. This development emphasizes the company’s confidence in its long -term perspectives and its obligation to assess the value of shareholders.

Of course, promotions have not been good lately. However, this is undoubtedly due to the fact that short -term attention on the market has declined in sales and revenue in recent years. However, the long -term image shows that this can be a classic excessive response. The main business remains strong, the company is still very profitable and the management is implementing a disciplined capital return strategy.

In addition, the long -term history remains intact: the number of pools in the US continues to grow slowly but steadily, and the dominant pool distribution network gives it an important competitive advantage. With more than 445 sales centers and deep relationships with pool professionals, it would be very difficult for the competitor to replicate their scale.

Yes, there is a risk. Further consumer discretion costs, constantly high interest rates or housing market downturn can affect demand. However, the high impact of the pool on the secondary set and the strong balance help to mitigate this risk. And investors are paid to wait, constantly growing dividends and regular buying.

Long -term investors wishing to add a friendly, resistant business to their portfolios, Pool Corp. Looks like a smart purchase while the stock is shrinking.

Consider this before buying stocks in the pool:

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*The stock advisor returns from 2025. May 19

Daniel Sparks and his customers have no position in any of the above shares. The Motley fool has no position in any of the above stocks. The Motley fool has a disclosure policy.

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