Genuine Parts Company

Genuine Parts Company (GPC) distributes automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. Standard and Poor's puts them in the consumer discretionary sector.

GPC increased its quarterly dividend in February, 2012 from 45 to 49.5 cents per share. It was the 56th consecutive annual increase. 

Third quarter results were released on October 18, 2012.  Compared with Q3 2011, sales were up 3%, net income was up 14%, and earnings per share were up 14%.  

For the first nine months:

Automotive Group revenue was up 4%, operating profit was up 11%, and profit margin was up from 8.2% to 8.7%. 

Industrial Group revenue was up 8%, operating profit was up 10%, and profit margin was up from 7.9% to 8.1%. 

Office Products revenue was down 1%, operating profit was up 2%, and profit margin was up from 7.4% to 7.6%. 

Electrical Group revenue was up 7%, operating profit was up 27%, and profit margin expanded from 7.2% to 8.6%.  

Morningstar indicates that GPC's long-term debt as a percentage of capital is 14%. At the December 24, 2012 closing price of $63.82, GPC yielded 3.1%.  I own shares of GPC and I would consider buying more at $60 or less.  I would consider selling some of the shares at $69.47.  I will adjust these figures if GPC continues its pattern of increasing its dividend in February.

I think it's a company worth investigating for inclusion in a dividend portfolio. As always, this is not a recommendation to buy, but a suggestion for a stock to study. Price is an important consideration. Use your own judgment.