Genuine Parts plans a split by 2027, offers 4% yield, and trades undervalued with growth expected through 2028.

Genuine Parts Company (GPC), a historic dividend king with a near 4% yield, is currently undervalued with a price-to-earnings ratio of 14.38 compared to its norm of 17.27. The company plans to split into two independent entities—Global Automotive and Global Industrial—by the first quarter of 2027, aiming for tax-free treatment and better operational focus. Earnings are projected to grow by 5% in 2026, 8% in 2027, and 12% in 2028, supporting both capital appreciation and dividend income. The analyst targets a stock price of $125 before 2027 and over $140 by 2028, recommending GPC as a buy for income and growth at current levels.