POOL Dividend Type Payments

Pool Corp dividend

Although POOL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Pool Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Pool Corp (POOL)
Bid Ask Last Change Volume P/E Market Cap
145.18 158.83 158.83 +1.85 347K 28 6.2B

POOL Dividend-Like Income Using Covered Calls

With POOL at 158.83, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 4.76 1.3
5% 7.94 2.2
10% 15.88 4.4

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On POOL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 170.00 0.75 32 2.3 11.17 (7.0%)
Jul 19 175.00 2.35 124 1.9 16.17 (10.2%)
5% Yield On POOL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 170.00 0.75 32 2.3 11.17 (7.0%)
Jul 19 170.00 3.80 124 3.1 11.17 (7.0%)
10% Yield On POOL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 165.00 1.95 32 6.1 6.17 (3.9%)
Jul 19 165.00 5.60 124 4.5 6.17 (3.9%)

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Want more examples? POL Dividend | POR Dividend