Genuine Parts Company (NYSE:GPC) began this year as a $65 stock but has run up to $80 per share, thanks to the strength of its underlying industry. Not only that, but over the past several years, Genuine Parts’ dividend has risen along with its profits and share price.
Genuine Parts Company (NYSE:GPC) quite simply has a track record of increasing dividends that is tough to match. Earlier this year, the company provided investors with a strong 9% increase in its quarterly dividend, which made this year the 57th in a row of increased dividends paid to shareholders.
Clearly, no company can maintain this kind of streak without the supporting underlying fundamentals, which Genuine Parts Company (NYSE:GPC) has.
Genuine Parts reported record sales and earnings in its fiscal second quarter, with sales growing 10% and EPS up 29% versus the same period one year ago.
This is how Genuine Parts Company (NYSE:GPC) is able to keep increasing its already solid dividend, which yields 2.6% at recent prices.
These stocks are firing on all cylinders
Each of these companies is capitalizing on the increasing trend of consumers fixing up their old cars to keep them on the road longer. The industry tailwinds are there for replacement auto parts: mainly, the struggling economy and the frustratingly high unemployment rate.
These stocks have rallied very strongly over the past couple years, and have provided returns well in excess of the broader market. No matter whether you’re a growth or income investor, there’s an auto parts stock for you.
Robert Ciura has no position in any stocks mentioned. The Motley Fool owns shares of O’Reilly Automotive.
The article Auto Parts Are a Booming Business, And Here’s How You Can Profit originally appeared on Fool.com.
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