Genuine Parts Company (NYSE: GPC) has a long history of returning significant cash to investors in the form of dividends and share buybacks. It has paid a quarterly dividend every year since 1948, and the company has raised its quarterly dividend over the past 63 consecutive years. This year it has raised quarterly dividend by 6% to $0.76 per share, yielding close to 3%.
Dividend investors always like to invest in companies that have a long dividend growth history. In addition, sustainable financial growth along with strong future fundamentals makes Genuine Parts Company a solid play for dividend growth investors.
Genuine Parts Company is engaged in the distribution of automotive replacement parts, office products, industrial replacement parts, and electrical/electronic materials. Its strategy of investing in organic growth opportunities along with acquisitions is supporting financial growth.
GPC has generated sales growth of 15% in fiscal 2018 compared to 2017. Its earnings per share, however, grew at a much faster pace than revenue growth. Its earnings per share of $5.68 in fiscal 2018 increased substantially from earnings of $4.40 per share in 2017. With the significant revenue and earnings growth, its cash flows are also accelerating at a double-digit rate – allowing GPC to return massive cash to investors in the form of dividends and share buybacks.
Its CEO said, “We completed our first full year of operations in Europe and successfully combined EIS into Motion Industries to form a larger and stronger industrial business. With these and other accomplishments, and our plans in place for the new year, we are well-positioned to further strengthen our global platform in 2019, driving long-term sustainable growth and significant value for our shareholders.”
The company expects to make 2019 another record-breaking year. Its revenue and earnings are projected to increase at a sharp pace during 2019. Therefore, its cash returns appear safe and sound. Its financial growth and future prospects are helping in enhancing investor’s capital investments. Its share price rose 18% in the last twelve months amid prospects for its penetration in European markets and sustainable growth in financial numbers.