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.
- 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. Try any of our Foolish newsletter services free for 30 days. 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.