One Dividend King Yielding 2.9% to Target This Summer

Genuine Parts (NYSE:GPC) is an Atlanta-based company engaged in the distribution of automotive replacement parts, industrial replacement parts, and other specialized materials.

Shares were up 1.43% in mid-afternoon trading on July 3. Markets have started strong in July, but anxious investors should still look to target dividend stocks to fill out their portfolios in the face of economic headwinds.

Genuine Parts has achieved 63 consecutive years of dividend growth. This is an impressive statistic by itself, but it has also achieved 6% annual growth in its core dividend over the past 20 years.

It last hiked its quarterly dividend payment to $0.762 per share. This represents a 2.8% yield at the time of this writing.

The company last released its first quarter 2019 results on April 18. Sales rose 3.3% year-over-year to $4.7 billion. The 2% bump in organic growth from acquisitions was offset due to a negative impact from foreign currency translation.

Genuine Parts reported solid growth in its U.S. business, and it has reported strong results in its foray into Australia and Canada. NASDAQ analysts are forecasting dividend-growth of 5.2% annually into the next decade.

The only drawback for potential buyers is Genuine Parts’ current price point. The stock currently boasts a price-to-earnings ratio of 18, which is not an unfavourable level.

However, shares had an RSI of 67 at the time of this writing. This puts Genuine Parts stock just outside of technically overbought territory.

I like the stock going forward, but value investors may want to await a more favourable entry point.