Raised again, and cash flow still covers it — barely. Pool raised the quarterly dividend to $1.30 in April 2026, its latest increase in an unbroken run of annual rises back to 2008 in the XBRL record. FY2025 dividends of $184.9 million were 59.7% of $309.5 million of free cash flow — a pass, by three-tenths of a point. Net debt of $1,094.5 million is 1.7x FY2025 EBITDA of $630.9 million, inside the pass band, though earnings fell for a third year (net income $406.4 million vs $434.3 million in 2024).
Key risk: Earnings have fallen three years running while working capital (inventory) absorbs cash, so the 59.7% payout has almost no cushion if 2026 cash flow repeats the 2025 decline.
Changes if: Free-cash-flow payout crosses 60%, or the quarterly rate is held flat for a full year.
- ✓Cash-flow cover 59.7% of FY2025 free cash flow; pass (<60%), with $0.3pt of headroom. Q3 2026 9-month diluted EPS $10.02 vs $9.97 a year earlier.
- ✓Leverage Net debt/EBITDA 1.7x, pass (<3x).
- ✓Growth record Cash dividends paid per share rose every year 2008–2025 ($0.51 → $4.95) and the quarterly rate rose again to $1.30 in 2026; no cut in 10 years.
- ✓Trap screen Yield 2.62%, no cut, dividend raised; the price is down from its $301.69 52-week high, but the yield is not ≥8% and payout is under 100%.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.