Genuine Parts (
) has a long history of returning cash to shareholders through
dividends. It's paid them since going public in 1948.
It also has a record of raising its dividend and did so again
last week. Genuine Parts lifted its payout for 2013 by 9% to
$2.15 a share, marking the 57th annual increase.
The company is a member of the S&P 500 Dividend
Aristocrats index, which tracks the performance of big-cap firms
that have raised dividends each year for at least 25 years.
Genuine Parts will pay a quarterly installment of 53.75 cents
a share April 1 to shareholders of record March 8.
With the latest hike, Genuine Parts' dividend has grown by 82%
since 2003. Its stock has a yield of 3.1% vs. around 2.6% for the
S&P 500. Genuine Parts has the highest yield among the four
dividend-paying stocks in IBD's Retail/Wholesale-Auto Parts
While the company is best known as the operator of NAPA Auto
Parts stores, it's also a distributor of office products,
electronics and industrial parts. Auto parts is its biggest
operating segment, accounting for almost half of annual
Genuine Parts also reported last week that Q4 earnings rose
20% to $1.03 a share -- the second straight quarter of
accelerating growth. Sales rose 3% to nearly $3.12 billion.
Revenue rose in the automotive, industrial and office-products
segments. But sales in its electrical segment fell 2%.
For all of 2012, Genuine Parts' profit rose 16% to $4.14 a
share, the third straight year of double-digit percentage growth.
Revenue rose 4% to $13.01 billion, down from double digits in the
prior two years.
For the current year, analysts see Genuine Parts' earnings
rising 5% to $4.33 a share.