Tuesday, February 19, 2013
Dividend Increase: GPC
Genuine Parts Company (GPC) is increasing its quarterly dividend by 8.6%, from $0.495 to $0.5375 per share, putting the company on track for its 57th consecutive year of dividend growth (press release). Given that I own 50 shares of GPC, my quarterly dividend increases from $24.75 to $26.88, which will add an extra $8.52 to my annual dividend income. This dividend increase also boosts my yield on cost to 3.99%. Thus far this year, there have been dividend increases for 9 of the 27 dividend growth stocks in my portfolio.
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Hi DG Thanks for the information. How do you get these alerts? Is there a source you subscribe to for all the stocks in your portfolio?
ReplyDeleteAnonymous: I actually note down the date of the last dividend increase, which gives me a ballpark estimate of when the next increase might be announced. I then monitor the investor relations page for the press release. In the case of GPC, their last increase was in February 2012 and I knew they would be reporting earnings this morning, so I was fairly confident a dividend increase would be announced today.
DeleteThat said, a pretty good source for dividend increase announcements is Seeking Alpha (see the Dividends category on their Market Currents page).
Thanks for the tip. I didn't have this stock in my watch list, so I checked it out. It pays 2.8% dividend, which is below my 3% requirement but 56 years of consecutive dividend increase at 7 - 8% is impressive and worth having it in the portfolio. I added it to my watch list.
ReplyDeleteI bought some shares in GPC a couple quarters ago. One of the things that has attracted me to it, besides a pattern of dividend increases that goes back to before my parents even met, is the fact that the company is growing sales and earnings. The most recent quarter saw an increase in sales of about 3.5% and an increase in net income of almost 19%. As long as the management continues to increase sales and earnings, I'm comfortable that the dividend growth pattern can continue.
DeleteMartin: You're welcome. GPC is a well-run company and it's been a great investment for me. It's definitely a stock worth watching.
DeleteSome Guy: Thanks for your comment. You make a good point about dividend growth being supported by revenue and earnings growth. I think 2012 was the third consecutive year of double-digit earnings growth. The company seems well-positioned to continue its long dividend growth streak.
DeleteI've included this company in my watchlist. Looks like a solid stable company I'd be interested in adding to my portfolio. Love the long history of dividend increases. Amazing for a company to keep the streak that long! Management definately knows what they are doing.
ReplyDeleteDGSI: Indeed, the company appears to have a very competent management team. I like the fact that they emphasize in their earnings calls that their first priority for cash is the dividend -- and they back that up with over 50 consecutive years of dividend growth.
DeleteEh I need to take a look at GPC again. Now that the dividend has increased and EPS has increased I could probably raise my buy price. I came very close to buying this one last year, I really should have! GPC will be in my portfolio at some point!
ReplyDeleteCongrats on a solid raise here.
CI: Thanks! GPC has been a good stock for me, so I'm glad it's in my portfolio.
DeleteHi, Thanks for sharing such a wonderful piece of information. I must say that while reading your post I found my thoughts in agreement with the topic that you have discussed, which happens very rare.
ReplyDeleteDividend: Thanks for the feedback!
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