POOL Dividend Type Payments

Pool Corporation dividend

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

Pool Corporation (POOL)
Bid Ask Last Change Volume P/E Market Cap
361.13 392.00 361.13 -1.78 310K 27 14B

POOL Dividend-Like Income Using Covered Calls

With POOL at 361.13, here's a table showing how big the annual "dividend" (i.e. 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% 10.83 3.0
5% 18.06 4.9
10% 36.11 9.9

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
May 17 400.00 2.00 29 6.9 8.00 (2.2%)
Jun 21 400.00 4.40 64 6.9 8.00 (2.2%)
5% Yield On POOL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 400.00 2.00 29 6.9 8.00 (2.2%)
Jun 21 400.00 4.40 64 6.9 8.00 (2.2%)
10% Yield On POOL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 18 400.00 18.20 183 9.9 8.00 (2.2%)
Dec 20 400.00 24.70 246 10.0 8.00 (2.2%)

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