3 Dividend Kings to Buy Right Now Without Hesitation

NYSE: GPC | Genuine Parts Co. News, Ratings, and Charts

GPC – The stock market indexes drifted higher yesterday with investors looking ahead to the Federal Reserve’s monetary policy tightening to control surging inflation. However, the Ukraine-Russia war, extended COVID-19 lockdowns in China, and the possibility of an economic slowdown, could keep the stock market under pressure in the near term. Amid such an uncertain environment, we think it could be wise to bet on the stocks of Genuine Parts (GPC), Nordson (NDSN), and ABM Industries (ABM). These companies are distributing solid dividends to their investors. Read on.

The major stock market indexes rose yesterday as investors looked forward to the Fed’s monetary policy tightening to control galloping inflation. The Federal Reserve is expected to raise interest rates aggressively this year. The central bank is also expected to announce a plan to cut its roughly $9 trillion balance sheet by $95 billion per month, beginning June.

However, the Ukraine-Russia war and extended COVID-19 lockdowns in China will likely keep the stock market under pressure in the near term. Therefore, investors should consider investing in stocks with stable dividend payouts to secure a steady income stream.

Genuine Parts Company (GPC), Nordson Corporation (NDSN), and ABM Industries Incorporated (ABM) have been paying dividends for at least 50 consecutive years. So, we think investors could consider betting on these stocks considering their solid fundamentals and ability to provide stable dividend income.

Genuine Parts Company (GPC)

GPC in Atlanta, Ga., distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, heavy-duty equipment, and industrial parts and materials. Automotive Parts Group and Industrial Parts Group are the company’s  two operational segments.

Last month, GPC announced an acquisition of its European Automotive business. Effective April 12, 2022, Alliance Automotive Group (AAG), the company’s wholly-owned automotive distribution company based in London,  acquired Lausan Group (Lausan). Paul Donahue, Chairman and Chief Executive Officer of GPC, said, “With our entry into Spain and Portugal, we expect to further strengthen Lausan’s market-leading position by capitalizing on our European scale and purchasing expertise, as well as leveraging the roll-out of our NAPA brand across this region.”

GPC declared a $0.90 quarterly dividend on April 28, 2022, payable on July 1, 2022. Its $3.58 annual dividend yields 2.7% at the current share price. Also, it has a four-year average dividend yield of 3%. Its dividend payouts have increased at a 4.8% CAGR over the past five years.

GPC’s net sales increased 18.6% year-over-year to $5.29 billion for the first quarter ending March 31, 2022. Its gross profit increased 18.5% from its year-ago value to $1.83 billion, while its adjusted net income grew 22% from its year-ago value to $265.65 million. The company’s adjusted EPS rose 24% from its prior-year quarter to $1.86.

Analysts expect GPC’s revenue to increase 10.9% year-over-year to $5.30 billion for the second quarter, ending June 30, 2022. The company’s EPS is expected to grow 16.3% year-over-year to $2.02 for the same period. In addition, it has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each  of the trailing four quarters.

The stock has gained 3.6% over the past year and 4.6% over the past month.

GPC’s POWR Ratings reflect this promising outlook. The company has an overall rating of A, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

The stock also has a B grade for Quality, Growth, and Stability. Within the Auto Parts Industry, it is ranked #2 of 70 stocks.

To see additional POWR Ratings for Value, Sentiment, and Momentum for GPC, click here.

Nordson Corporation (NDSN)

NDSN engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It has two operational segments, Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). NDSN is headquartered in Westlake, Ohio.

NDSN paid a $0.51 quarterly dividend on March 8, 2022. Its $2.04 annual dividend yields 0.9% at its current share price. It has a four-year average dividend yield of 0.9%. In addition, the company’s dividend payouts have increased at a 12.8% CAGR over the past five years.

For the first quarter ended Jan. 31, 2022, NDSN’s sales increased 15.7% year-over-year to $609.17 million. Its non-GAAP operating profit grew 44.4% from its year-ago value to $157.42 million, while its non-GAAP net income improved 57% from its prior-year quarter to $121.65 million. The company’s non-GAAP EPS amounted to $2.07, up 57% from its year-ago value.

The $2.29 consensus EPS estimate for the second quarter, ending April 30, 2022, represents a 7.9% improvement year-over-year. Analysts expect its revenue to increase 9.4% year-over-year to $644.90 million for the same period. Also, it has an impressive earnings surprise history: it surpassed the consensus EPS estimates in three of the trailing four quarters. The company’s shares have surged 3.8% over the past year.

NDSN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our POWR Ratings system. NDSN is also rated an A grade for Quality and a B for Sentiment and Stability. Within the B-rated Industrial – Machinery industry, it is ranked #18 of 77 stocks.

In total, we rate NDSN on eight distinct levels. To see additional POWR Ratings for Growth, Value, and Momentum for NDSN, click here.

Click here to check out our Industrial Sector Report for 2022

ABM Industries Incorporated (ABM)

ABM provides integrated facility solutions in the United States and internationally. Business and Industry, Technology and  Manufacturing, Education, Aviation, and Technical Solutions are the company’s operational segments of the New York City-based company. It provides janitorial, facilities engineering, parking, custodial, landscaping and ground, mechanical and electrical services; and vehicle maintenance and other services to rental car providers.

In an all-cash transaction last month, ABM acquired Momentum Support (“Momentum”), headquartered in Dublin, Ireland. Momentum is a renowned independent provider of facility services, primarily janitorial, across Ireland and Northern Ireland. Momentum generated annual revenue of approximately $70 million in 2021 and has a workforce of 2,300. This acquisition reflects ABM’s ELEVATE strategy to grow via strategic acquisitions that expand the company’s footprint in attractive geographies and end markets.

ABM paid a $0.20 quarterly dividend on May 2, 2022. Its $0.78 annual dividend yields 1.7% at its current share price. It has a 1.9%  four-year average dividend yield. In addition, the company’s dividend payouts have increased at a 2.8% CAGR over the past five years.

During the first quarter ending Jan. 31, 2022, ABM’s revenue increased 29.7% year-over-year to $1.94 billion. Its  operating profit amounted to $106.00 million, while its adjusted net income came in at $64.4 million. Its  adjusted EPS stood at $0.94 over the period.

The $0.84 consensus EPS estimate for the second quarter, ending April 30, 2022, represents a 2.7% improvement year-over-year. Analysts expect revenue to increase 25.5% year-over-year to $1.88 billion for the same period. Furthermore, it has an impressive earnings surprise history, it  surpassed the consensus EPS estimates in each  of the trailing four quarters.

The stock has soared 15.8% in price year-to-date and 14.5% over the past three months.

ABM’s strong fundamentals are reflected in its POWR Ratings. The stock has a B grade for Growth and Value. In the B-rated Outsourcing – Business Services industry, it is ranked #17 of 44 stocks.

Click here to see the additional POWR Ratings for ABM (Stability, Quality, Momentum, and Sentiment).


GPC shares were trading at $135.13 per share on Wednesday afternoon, up $3.36 (+2.55%). Year-to-date, GPC has declined -2.92%, versus a -9.50% rise in the benchmark S&P 500 index during the same period.


About the Author: Spandan Khandelwal


Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
GPCGet RatingGet RatingGet Rating
NDSNGet RatingGet RatingGet Rating
ABMGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Should You Be Worried About $200 Oil?

One of the biggest challenges facing the economy is the rising price of oil. Already, it’s starting to eat into consumer spending and exacerbating other inflationary pressures. However, investors should prepare themselves for a world with much higher oil prices. In this article, we will explore some reasons that oil prices could surge even higher and strategies investors can use to profit in this scenario. Read on below to find out more…

:  |  News, Ratings, and Charts

3 Defensive Stocks to Consider Buying During the Market Downturn

The Fed’s aggressive interest rate increases to fight high inflation has raised concerns about a potential recession. During times of market turmoil, companies in defensive sectors will likely perform better than the broader market owing to inelastic demand for their products. Thus, we think it could be profitable now to bet on shares of defensive companies CVS Health (CVS), PepsiCo (PEP), and Albertsons (ACI). Read on.

:  |  News, Ratings, and Charts

5 Beaten-Down Tech Stocks That Are Screaming Buys

Concerns over the hawkish Fed and increasing odds of the economy slipping into recession have caused a broad-based sell-off in the stock markets over the past few weeks. However, this offers entry opportunities in beaten-down tech stocks VMware (VMW), Jabil (JBL), Fujitsu (FJTSY), Semtech (SMTC), and Cirrus Logic (CRUS), which possess solid fundamentals.

:  |  News, Ratings, and Charts

3 High-Quality Dividend Aristocrats to Buy in May

The stock market is experiencing heightened volatility and given the Fed’s aggressive monetary stance to tame inflation, stocks might tumble further in price before hitting a bottom. Hence, we think dividend aristocrats W.W. Grainger (GWW), Target Corp. (TGT), and Cintas Corp. (CTAS) could be quality additions to one’s portfolio now. Read on.

:  |  News, Ratings, and Charts

5 Beaten-Down Tech Stocks That Are Screaming Buys

Concerns over the hawkish Fed and increasing odds of the economy slipping into recession have caused a broad-based sell-off in the stock markets over the past few weeks. However, this offers entry opportunities in beaten-down tech stocks VMware (VMW), Jabil (JBL), Fujitsu (FJTSY), Semtech (SMTC), and Cirrus Logic (CRUS), which possess solid fundamentals.

Read More Stories

More Genuine Parts Co. (GPC) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All GPC News