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Genuine Parts (GPC) was founded by Carlyle Fraser at 1928 with six employees and $75,000 at first year sales; backward 92 years of stable progress, sales motored ahead to more than $19 billion this year, observes Ingrid Hendershot, value-oriented cash manager and editor of Hendershot Investments.
With can half of the company’s revenues coming from auto replacement parts, genuine Parts boasts the largest AUTO PARTS network at the world.
More from Ingrid Hendershot: Berkshire, Buffett, Book evaluate and Buybacks
The corporation provides parts to thousands of National AUTO PARTS club (NAPA) stores over the United States and Canada. The AUTO PARTS issue has also expanded over acquisitions at Mexico, Australasia and most recently at Europe.
A hallmark of genuine Parts has been the company’s compatible growth at sales, wage and dividends. Sales eat grown at 87 of the final 92 years nevertheless profits eat risen at 75. genuine Parts has paid dividends to shareholders each year because going public at 1948.
In February 2020, the corporation increased the dividend by 4% to an annual tax of $3.16, marking the 64th consecutive year of increased dividends, a record matched by little other companies. The dividend currently yields an attractive 3.6%.
Management is committed to creating shareholder evaluate over a disciplined headmaster allocation strategy. With the issue generating strong free cash flow, priorities because cash are to reinvest at existing businesses, figure acquisitions to spur future growth, steadily enlarge the dividend because they eat done because more than six decades and repurchase shares.
Over the final five years, the corporation has returned $2.9 billion to shareholders over dividends and section repurchases. genuine Parts targets acquisitions with returns above invested headmaster can 15%.
Most of the acquisitions eat been small bolt-on acquisitions because its different divisions, besides at 2017, GPC made a $1.5 billion acquisition of U.K.-based union Automotive orchestra which provided the vehicle to enlarge into Europe.
See also: Looking Beyond the Gloom
Genuine Parts is a high-quality corporation with a expectation explore record of compatible growth at sales, wage and dividends, a disciplined headmaster allocation tactic and hard long-term growth goals which to energy future evaluate because investors hopping above because the ride. We are adding to our position. Buy.
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