Portfolio Update
The FiveTwenty portfolio received $68.50 in dividends in the past week. LMT and VFC paid their quarterly dividends during the week.
| Past Week Dividend | $68.50 |
| Current Quarter Dividend (Q1 2022) | $1,064.19 |
| LifeTime Dividend | $3,175.00 |
| Estimated Annual Dividend | $4,839.77 |
The capital allocation for the week of 03/27/2022 to 04/02/2022 will be used to add to our position in Genuine Parts Company (NYSE: GPC).
GPC – Position Update
Since our last check-in on GPC in week 8 of 2022, the share price increased 1.3% from $126.86 to $128.54.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 66 years | 66 years | |
| Yield | 2.60% | 2.57% | 2.82% |
| Payout Ratio | 48.34%1 | 47.17%1 | |
| P/E | 18.601 | 18.361 |
1 computed using TTM adjusted EPS of $6.91 as of Q4 2021
FY 2021 earnings report
Did GPC’s latest earnings report raise any warning flags?
We discussed GPC’s FY 2021 earnings report in our last update. Overall, revenue grew 14.1%, adjusted net income increased 30.3%, and adjusted EPS were 31.1% higher compared to FY 2020.
| Revenue (in millions) | Net Income (in millions) | EPS . | |
| FY 2020 | $16,537 | $765 | $5.27 |
| FY 2021 | $18,870 | $997 | $6.91 |
| % Change | 14.1% | 30.3% | 31.1% |
Additional noteworthy developments during the quarter:
- On 03/22/2021, GPC announced that it will release Q1 2022 earnings on 04/21/2022.
Thesis
Why are we adding to our position in GPC?
With no new developments since our last update, our investment thesis remains unchanged. We are using this week’s capital allocation to add to our position at a similar valuation to our initial investment.
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