#2 - Genuine Parts (NYSE:GPC)
The Covid-19 pandemic has made many investors fans of thematic investing. And one theme that emerged was the increased value of used cars. That brings us to the next dividend aristocrat on this list, Genuine Parts (NYSE:GPC).
Simply put, demand for new cars is likely to wane among lower income consumers. And used car prices remain at historically high levels. This means that consumers are likely to continue maintaining their existing vehicle. That’s good news for shareholders of GPC stock.
Since the pandemic, GPC stock is up 140% and in its 2022 first quarter earnings report, the company posted a 17% year-over-year (YOY) gain in revenue and a YOY increase of over 20% in earnings per share (EPS).
Genuine Parts has been increasing its dividend at an annual rate of about 4%. Plus, the company’s earnings are supposed to grow faster than the dividend which means that the company’s string of 67 consecutive years of dividend increases may be more reliable than the car that you’re keeping maintained through this recession. Well, unless you use Genuine Parts.
About Genuine Parts
Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. It operates in two segments: Automotive Parts Group and Industrial Parts Group segments. The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, and heavy duty equipment; and equipment and parts used by repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, and individuals.
Read More - Current Price
- $156.32
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $173.10 (10.7% Upside)
