Genuine Parts And Emerson Electric: 60 Years Of Dividend Boosts

For investors who would like to add something new to their portfolio, I think these two long-term dividend paying stocks look very attractive.

Genuine Parts (GPC) is one of America's leading suppliers of replacement automobile and truck parts that it sells through nearly 6,000 NAPA stores in 44 states. The company also does business in Canada, Mexico, most of Europe, and Australia. The company is benefiting from the COVID-19 economic woes that are making it necessary for countless people with aging cars to repair them rather than buy something new. The coronavirus emergency is also increasing the demand for used cars that, over the years, will require repairs.

Even many individuals who can afford to buy new cars are proving reluctant to do so. COVID-19 showed millions of Americans how suddenly their comfortable lives can be turned upside down  — and how quickly their savings can be depleted. For many such people, plunking down $30 grand or more for a new car isn’t going to happen for a long time. Chalk up even more customers for Genuine Parts.

Even before the COVID-19 crisis showed up, Genuine Parts was doing well. Millions of Americans have been in an economic squeeze for several years that kept many high mileage cars on the road. That trend is unlikely to end when the coronavirus pandemic fades away.

Genuine Parts is a S&P Dividend Aristocrat with 64 consecutive dividend hikes. Its yield has recently been an attractive 3.33% — over four times what 10-Year Treasury bonds currently yield. I think GPC will continue to be an excellent long-term performer.

Emerson Electric (EMR) isn’t on many investors' radar screens who still think of this venerable company as a producer of electric motors and other equipment that isn’t particularly exciting. However, Emerson has become a global supplier of efficient automated equipment for the chemical, energy generation, pharmaceutical, food, and beverage industries.

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