Genuine Parts Company
The automotive industry has been enjoying stellar relative strength of late -- and car parts companies have been one of the biggest beneficiaries of the trend. Enter Genuine Parts Company (GPC), the firm behind the NAPA brand of auto parts retailers, a business that stocks nearly 400,000 parts at each of its nearly 5,000 franchised and company-owned stores.
Right now, the average car driving in the U.S. was built 11.1 years ago. That's the oldest median age for the country's vehicle fleet that's ever been reported, and as consumers look to stretch the lifespan of aging cars, parts makers stand to benefit in a big way.
Car parts aren't GPC's whole business. The firm also supplies industrial and electronic components, businesses which basically operate under the same models as NAPA's wholesale parts business -- it serves customers who need mission-critical parts for industrial machines. GPC's role is all about getting niche parts to customers as fast as possible. Currently, GPC pays out a 49.5-cent dividend per share for a 2.85% dividend yield. There's more room for the firm to boost its payout in 2013.To see these dividend plays in action, check out the at Dividend Stocks for the Week portfolio on Stockpickr.
Twitter and become a fan on Facebook. At the time of publication, author had no positions in stocks mentioned. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.
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