5 Best Dividend Growth Stocks to Buy Now

3. Pool Corporation (NASDAQ:POOL)

Years of Consistent Dividend Growth: 11
5-Year Compound Average Dividend Growth Rate: 21.49%

Pool Corporation (NASDAQ:POOL) is an American manufacturing company that delivers products and services to swimming pools, irrigation, and outdoor industries. The company pays a quarterly dividend of $1.00 per share, with a dividend yield of 1.28%, as of September 25. The company has been raising its dividends consistently for the past 11 years.

In Q2 2022, Pool Corporation (NASDAQ:POOL) reported revenue of $2.1 billion, up 17.3% from the same period last year. Its operating income for the quarter stood at $419 million, growing 24% from the prior-year quarter. The company’s operating cash flow was $236.8 million and its free cash flow came in at $226 million. At the end of June 2022, it reported $91.4 million in cash and cash equivalents, compared with $58.4 million during the same period last year.

In July, Stifel reinstated its Buy rating on Pool Corporation (NASDAQ:POOL) with a $415 price target, following the company’s Q2 earnings. The firm expects company to maintain its performance in the upcoming quarters.

At the end of Q2 2022, 40 hedge funds tracked by Insider Monkey owned stakes in Pool Corporation (NASDAQ:POOL), compared with 42 in the previous quarter. These stakes hold a collective value of over $1.3 billion, up from $1.2 billion worth of stakes owned by hedge funds a quarter earlier.

Carillon Tower Advisers mentioned Pool Corporation (NASDAQ:POOL) in its Q1 2022 investor letter. Here is what the firm has to say:

“Pool (NASDAQ:POOL) is the world’s largest wholesale distributor of swimming pool supplies, equipment, and related leisure products. After an impressive run, the shares cooled off a bit as investors took some profits on stocks that were perceived to have benefitted from the pandemic. Despite this, the firm continues to see strong demand and remains well positioned to capitalize on a number of firmly established secular trends. Migration trends toward the Sunbelt as well as the desire consumers have shown to invest in their outdoor living and entertainment spaces have resulted in healthy fundamentals for the pool industry going forward.”