Genuine Parts Company (GPC -0.97%) 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
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