Is Genuine Parts Company (GPC) Among the Cheapest Dividend Aristocrats to Buy Now?

As an investor, you're always on the lookout for undervalued stocks that offer a solid dividend yield and the potential for capital appreciation. Genuine Parts Company (GPC), a Dividend Aristocrat with a 68-year history of dividend increases, might just be the hidden gem you've been searching for. Let's dive into the numbers and see if GPC is indeed one of the cheapest Dividend Aristocrats to buy now.



First, let's take a look at GPC's stock price performance. As of February 15, 2025, GPC's stock price is around $120 per share, which is a significant drop from its 52-week high of $145. This decline could indicate that GPC is undervalued, presenting an opportunity for investors.

Now, let's compare GPC's valuation metrics to those of other Dividend Aristocrats and the broader market.



| Metric | GPC | Dividend Aristocrats Average | S&P 500 Average |
|---|---|---|---|
| P/E Ratio | 16.5 | 18.7 | 20.3 |
| P/B Ratio | 4.5 | 5.2 | 5.5 |
| Dividend Yield | 3.22% | 2.5% | 1.5% |

As you can see, GPC's P/E and P/B ratios are lower than the averages for Dividend Aristocrats and the S&P 500. Additionally, GPC's dividend yield is higher than the average for Dividend Aristocrats and significantly higher than the S&P 500 average. These metrics suggest that GPC may be undervalued compared to other Dividend Aristocrats and the broader market.



GPC's dividend history is another compelling reason to consider the stock. The company has increased its dividend for 68 consecutive years, making it a Dividend King. This consistency demonstrates GPC's financial strength and commitment to returning value to shareholders.



Now, let's examine GPC's dividend growth rate compared to inflation. GPC's 5-year dividend growth rate of 5.73% is higher than the average annual inflation rate of around 3% over the same period. This indicates that GPC's dividend growth has kept pace with or even outpaced inflation, preserving the purchasing power of shareholders' dividends.

In conclusion, GPC's undervalued stock price, lower valuation metrics compared to other Dividend Aristocrats and the broader market, high dividend yield, and strong dividend growth history make it an attractive investment opportunity. While there are always risks involved in investing, GPC's fundamentals and long-term track record suggest that it is well-positioned to continue growing its dividend and appreciating in value. As always, it's essential to conduct thorough research and consider your personal financial situation before making any investment decisions.