Group 1 Automotive
Small-cap auto dealer Group 1 Automotive (GPI) operates 129 auto franchises at 100 dealerships in the US and the UK. The firm also owns 22 collision service centers stateside. While auto sales have been under significant pressure in the last few years, investors' fears have largely been unfounded. Selling cars may be a capital-intense business, but the most financially vulnerable dealerships closed their doors during the depths of the 2008 financial crisis.
Now, with credit flowing more freely once again, dealers like Group 1 are seeing a return to normalcy in their financial performance. Group 1's sales are already approaching their pre-recession highs.While car sales aren't a dying business, they're also not a growth business here in the U.S. To combat that, Group 1 is another stock that's been pushing abroad. The company already holds a significant presence in the UK, but now, a bigger push to Europe could spell growth for Group 1. Domestically, a focus on selling higher-margin products (like service contracts for used cars) should spur some top-line growth in the near-term. Last week's 18% dividend hike brings Group 1's dividend payout to 13 cents per share each quarter, a 1.27% yield at current prices. To see these dividend plays in action, check out the Dividend Stocks for the Week portfolio on Stockpickr. And if you haven't already done so, join Stockpickr today to create your own dividend portfolio.
Twitter and become a fan on Facebook. -- Written by Jonas Elmerraji in Baltimore.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV