Down 63 percent, Warren Buffett dividend stock signals opportunity
By Aditya Raghunath
Published on March 13, 2026.
Pool Corporation (POOL), the world's largest wholesale distributor of swimming pool supplies and equipment, has dropped 63% from its all-time high and nearly 40% over the past year. The company, valued at $7.76 billion, has returned 183% to shareholders in dividend-adjusted gains over the last decade. However, the ongoing decline in Pool Corp. (POOP) allows investors to buy the stock and benefit from a 2.5% dividend yield. Pool Corporation's annual dividend expense is roughly $185 million, while it is forecasted to end 2026 with a free cash flow of $389.75 million, indicating a payout ratio of less than 50%. The company's Q4 2025 revenue was $982 million, below estimates of $999 million, and its full-year 2026 earnings guidance of $10.85 to $11.15 per share fell short of Wall Street had been expected. Despite the ongoing pressure on new pool construction, CEO Peter Arvan noted that around 64% of pool product sales in 2025 came from maintenance items.
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