Re: Young Folk Portfolio ... New Buy.
There is enough cash in the account to buy a starter position in this portfolio. A starter position is usually around $500 give or take. Tomorrow I am buying a position in POOL.
Brief Description:
Pool Corporation (POOL) distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; pool equipment and components for new pool construction and the remodeling of existing pools; and irrigation and related products consisting of irrigation system components, and professional lawn care equipment and supplies.
POOL has a yield of 0.66% but it has a 5 year dividend growth rate of 19.34%.
I am purchasing POOL with two objectives in mind.
1) The dividend growth rate.
2) Potential high total return.
POOL has outperformed the market in the 1, 3, 5 and 10 year time frames.
1 Year:
POOL .. +53.00%
SPX .... +34.49%
3 Year:
POOL .. +211.0%
SPX ..... +66.22%
5 Year:
POOL .. +410.2%
SPX .... +125.0%
10 Year:
POOL .. +2.13K%
SPX ..... +364.3%
As you can see, POOL has crushed the market over every time frame. I am not expecting these same results going forward, but neither am I expecting the market to perform as well over the next 10 years as it has done over the last 10. I do think that POOL will continue to outperform even with lower rates of return. |
