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

By Chuck Saletta – Feb 3, 2014 at 9:00AM

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Genuine Parts Company has a reasonable valuation, a solid balance sheet, and a well-covered and growing dividend.

Genuine Parts Company (GPC -1.26%) 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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Chuck Saletta owns shares of Genuine Parts Company. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Genuine Parts Stock Quote
Genuine Parts
GPC
$184.92 (-1.26%) $-2.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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