Genuine Parts
distributes automotive replacement parts, industrial replacement parts,
business products and electrical and electronic components in North
America . The company has
grown profits and dividends at a 4% annual rate over the last 10 years, earning
a 15%+ return on equity. The 2008/2009
economic softness was a problem for GPC as
it was for most auto related companies; however, the company has resumed both
its dividend and earnings growth rate as a result of:
(1) product line
expansion,
(2) penetration
of new markets,
(3) aggressive
cost cutting,
(4) acquisitions.
Negatives:
(1) consumer
uncertainty dampens demand,
(2) GPC
lack pricing power in current environment
Genuine Parts is
rated A+ by Value Line, has 15% debt to equity ratio and its stock yields 3.2%.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2002
Debt/ EPS Down Net Value Line
Equity ROE Since 2002 Margin Rating
*over 50% of the companies in GPC
industry do not pay a dividend
Chart
Note:
GPC stock made great progress off its March
2009 low, quickly surpassing the downtrend off its September 2007 high (red
line) and the November 2008 trading high (green line). Long term, GPC
is in an uptrend (straight blue lines).
Intermediate term, it is in an uptrend (purple lines). The wiggly blue line is on balance
volume. The Dividend Growth and High
Yield Portfolios own full positions in GPC . The upper boundary of its Buy
Value Range Sell
Half Range
11/12
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