3 Reasons to Hold on to Genuine Parts Company's Stock

Genuine Parts Company (NYSE: GPC  ) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers three reasons why he's holding on to Genuine Parts Company's stock despite the 28% rise since he bought them a little more than a year ago.

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Summary:

  • Reasonable valuation, with the company trading in the market for slightly less than my fair-value estimate.
  • Healthy balance sheet, with a debt-to-equity ratio of around 0.3.
  • Well covered and growing dividend, with a 47% payout ratio and a 57-year history of dividend increases

To follow the IPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the IPIG portfolio, simply click here.


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  • Report this Comment On February 03, 2014, at 1:43 PM, willy325 wrote:

    I do not care about the price as I am a long term buy and hold forever dividend reinvesting stockholder.

    I am worried about ten or twenty years from now when every garage or auto dealership has a 3D printer and can simply print out parts for themselves…..in the meantime I will sit and let my money compound.

    A stock is never overpriced if you plan to never sell.

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