Why Pool Corp Stock Could Be the Cool Play in a Hot Summer

Few things are as sweet as resting by the swimming pool on a hot summer day

The data indicates that cool, refreshing water, the faint smell of chlorine, the warm sun on your face, a cool beverage in your hand -- it's always a good day when you're at a good swimming pool

What's the only thing that could make it better

How knowing that your investment in a solid stock Pool Corp (POOL -0

Pool is down a little bit right now, as the economy has made it tougher for people to sink tens of thousands of dollars into building new swimming pools

Meanwhile, But that's OK for two reasons, in this volatile climate

First, Pool is still a money-ing machine, even in a volatile economy

Meanwhile, Second, one day the pool will be a good one, and Pool stock will start climbing again (remarkable data), considering recent developments

On the other hand, When that happens, you will be glad you bought this stock while it was on sale

So, whether you're a short-term investor or have a long-term horizon, Pool is a buy for me right now, in today's market environment

That's why I call it one of my best stocks to buy on the dip and hold

However, Image source: Getty Images

How Pool is making money now Pool distributes and sells outdoor equipment, but it's best known for selling replacement parts and equipment for swimming pool installations (an important development)

That's an important point right now: Pool doesn't need a huge market of new construction to be successful

And it's doing well, in this volatile climate

Nevertheless, After seeing revenue dip on a year-over-year basis in the first quarter, Pool issued its Q2 earnings report on July 24

Why I Pool even with lowered guidance For long-term investors, I think Pool is a slam-dunk pick

Furthermore, However, this is a solid company with a steadily growing dividend and a cash position that increases each year (quite telling)

POOL Cash and Equivalents (Annual) data by YCharts (remarkable data), in today's market environment

Additionally, That's perhaps one reason why Berkshire Hathaway, which is headed by the famed buy-and-hold investor Warren Buffett, added Pool stock to its portfolio last year

Buffett and his team never buy on a whim and he has famously said his favorite stock holding period is forever, so you know Berkshire's in for the long haul (this bears monitoring)

This's a stock that pays you to hold it

Moreover, It's perfect for short-term income investors looking for ways to juice their portfolio or get some extra income from their holdings, or for long-term investors seeking a set-it-and-forget-it stock

The bottom line on Pool This isn't a blazing hot stock that's going to set your portfolio on fire (this bears monitoring)

But it's not going to leave you flat either

Instead, Pool is a solid, undervalued income stock that is going to look a bargain soon

And Wall Street is just starting to figure that out, as the stock started to move upward after the company's Q2 report

However, If you're looking to take a position in Pool, an ideal strategy would be dollar-cost averaging -- dividing your investment into four equal amounts and adding to your position over a set period of time, thereby eliminating the risk of short-term volatility.