Buy This Outstanding Dividend Stock While It's Down

This market leader may be out of favor today, but the pessimistic sentiment toward the stock may not stick around.

May 25, 2025 - 09:18
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Buy This Outstanding Dividend Stock While It's Down

In a choppy market like we've seen in 2025, dividend stocks can bring welcome stability to a portfolio. Regular quarterly dividend payments are highly predictable, provide cash to reinvest in other opportunities, and deliver a near-term cash return. These traits are attractive in any market -- but especially during periods when stock prices move lower.

Of course, this doesn't mean investors should wait for a bear market to buy stocks like this. Indeed, market pullbacks are usually when investors wish their portfolios had been more overweight in dividend stocks ahead of time. Not only are dividend stocks sometimes more resilient in market pullbacks than growth stocks, but the cash streams they pay investors also help offset the pain of unrealized losses.

Given the uncertain environment we are in now, it may make sense for some investors to bulk up their portfolios with more dividend-paying stocks. One that has taken a beating recently and looks particularly attractive is Pool Corp. (NASDAQ: POOL), a supplier of pool maintenance and construction supplies. Here's why you might want to consider adding it to your portfolio.

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