Wednesday, April 30, 2014
New Purchase - GPC
At the risk of looking foolish on a public blog, I added a new dividend champion to my holdings today. First off I know GPC stock is not cheap. I'm well aware of that fact. The thing is that I have to invest the money I save into something in order to achieve my goals and the reality is stocks aren't cheap anymore. I'm willing to pay up for only the highest quality companies which includes perennial dividend raisers such as KO, JNJ, PEP, EMR, and yes GPC. Keep in mind that capital gains & total return do not matter to me. I simply want a passive income stream rising faster than inflation and today's purchase will accomplish that.
The 42nd equity position for my self directed retirement fund is Genuine Parts Company. I've been meaning to add this one for years, but never did manage to get a buy in for one reason or another. Anyways I gained a new dividend champion with a 58 year streak (the longest streak that I own tied with PG) and also added some diversification to my holdings. GPC comes with a 17.6 forward p/e, plus it offers a decent yield at the price I paid. Not great, but not terrible either considering what I have to work with. I'd be more than happy to add new GPC shares on weakness. In fact that's my plan. Still hoping for a correction...
Core Position: No
Speculative Position: No
Expectations: Steady income; 7% (average) annual dividend growth
Automatic Sell: Dividend cut
Consider Selling: Frozen dividend, business fundamentally changes, management becomes untrustworthy, fundamentals deteriorate, wildly over valued stock price, or position fails to meet expectations