Genuine protects your dividend

Article Excerpt

GENUINE PARTS CO. $73 is a buy. Through your shares (New York symbol GPC; Income Portfolio, Manufacturing & Industry sector; Shares o/s: 145.4 million; Market cap: $10.6 billion; P.S. ratio: 0.6; Dividend yield: 4.3%; TSINetwork Rating: Average; www.genpt.com) you tap this leading seller of replacement auto parts. It has 1,100 company-owned stores (under the famous NAPA banner) and independent outlets in North America, Europe, Australia and New Zealand. Genuine also distributes industrial parts, office products and electrical equipment. In the U.S. and most countries, governments have designated the company’s auto parts and other businesses as “essential,” so they continue to operate. Even so, COVID-19 will hurt its revenues. In response, Genuine is cutting salaries and other costs. It expects these moves will save it $100 million in 2020 to better protect investor value. The savings should also let it keep paying your quarterly dividends of $0.79 a share; the annual rate of $3.16 gives you a solid 4.3% yield. yield…