Dividend Aristocrat Overview: Genuine Parts Company

Geniune Parts operates over 50 NAPA auto parts distribution centers across the U.S.,
which has helped the company grow its annual dividend since 1957.
Photo: Flickr.com/Darryl W. Moran Photography

About Genuine Parts Company

Genuine Parts Company is one of the leading distributors of auto replacement parts in the United States, Canada and Mexico.  Genuine Parts was founded in 1928 and is based in Atlanta, GA.  The company started as an auto parts distributor and since its founding has diversified its operations into four divisions:

  • The Automotive Parts Group is responsible for distributing auto replacement parts through its brands, NAPA (in the U.S.), NAPA Canada/UAP Inc. (in Canada) and Auto Todo (in Mexico). The Automotive Parts Group distributes heavy vehicle parts under the business name TW Distribution and Traction, and conducts its import parts distribution operations under the Altrom brand name.
  • The Industrial Parts Group operates under the name Motion Industries and distributes parts under a just-in-time delivery model to its customers.
  • The Office Products Group distributes over 50,000 business products to office product resellers.
  • The Electrical/Electronic Materials Group is a leading distributor of production supplies and value-added fabricated parts such as adhesives, hand and soldering tools, motors and bearings. The group’s customers are in the telecom, marine, oil and gas, and other fields.

The company is a member of the S&P 500 index and trades under the ticker symbol GPC.

Genuine Parts Company’s Dividend and Stock Split History

Genuine Parts has one of the longest dividend growth records of all publicly traded companies, with increases in the annual dividend since 1957.  Genuine Parts met the Dividend Aristocrat criteria of 25 consecutive years of increasing regular dividend payments in 1981.  Genuine Parts Company announces dividend increases in February, with the stock going ex-dividend in March.

Genuine Parts has compounded its payout at an average rate of 6.4% over the last 5 years and 6.3% over the last 10 years.

Genuine Parts Company has split its stock 10 times since 1959.  Most recently, the company split its stock in April 1997, 3-for-2.  Other 3-for-2 stock splits occurred in April 1992, May 1987, April 1984, April 1979, May 1970 and December 1967.  Genuine Parts also split its stock 2-for-1 in May 1972 and March 1959, and 3-for-1 in April 1962.

Direct Purchase and Dividend Reinvestment Plans

Genuine Parts Company has both direct purchase and dividend reinvestment plans.  The company has created a very favorable pair of plans for investors.  First, there is no fee to start investing through the plans.  Second, when you buy or sell shares, you’ll pay 8 cents per share for each transaction.  Genuine Parts pays all other transaction fees.  There is a minimum investment level of $10 for each direct purchase. In general, you can minimize your fees by buying and selling shares in larger quantities.

Helpful Links

Genuine Parts Company’s Investor Relations Website

Current quote and financial summary for Genuine Parts Company (finviz.com)

Information on the direct purchase and dividend reinvestment plans for GPC

Want to find out about more great dividend growth stocks?

Check out the list of current S&P Dividend Aristocrats.

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