GPC dividend: cash coverage and yield
MyStockButler's October 2026 analysis: GPC pays an annual dividend rate of $4.25 per share, with the forecast showing dividends rising from $4.32 to $4.45 and $4.58 per share. Cash coverage is modest: dividends used 86% of free cash flow, leaving approximately $68 million before acquisitions and other financing decisions.
How much does GPC pay in dividends?
Dividends rise modestly in the base case from $4.32 to $4.45 and $4.58 per share. The bear case freezes at $4.25 because recent free cash flow coverage is narrow; the bull case reaches $4.80 through 5% annual increases. The base path follows the latest 3.2% increase and the company’s 70-year record of annual growth.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 1,067 (1,010 / 1,120) | 1,101 (950 / 1,220) | 1,134 (920 / 1,320) |
| Shares (millions) | 138 (138 / 137) | 138 (138 / 137) | 138 (139 / 137) |
| Dividends per share | 4.32 (4.25 / 4.36) | 4.45 (4.25 / 4.57) | 4.58 (4.25 / 4.80) |
| Price to earnings | 16.00 (13.00 / 19.00) | 16.00 (12.00 / 21.00) | 15.50 (11.00 / 22.00) |
How much would GPC's dividend pay you?
$10,000 invested in GPC at its 3.4% dividend yield (our report of October 21, 2026) pays $340.00 in the first year, before tax. If its dividend per share keeps changing 5.8% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays $826.73, with $5,442.32 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Does GPC’s dividend fit its cash generation?
Cash coverage was modest. During the first nine months of 2026, GPC generated $817 million of operating cash and spent $314 million on capital expenditure. That left $502 million of free cash flow under its definition. Cash dividends used $434 million, or about 86% of that free cash flow. Only approximately $68 million remained before acquisitions and other financing decisions.
In 2025, GPC generated $890.762 million of operating cash flow and spent $469.838 million on capital expenditure. Free cash flow—the cash left after running the business and buying long-lived assets—was $420.924 million. Dividends consumed $563.842 million. The company therefore paid more than its internally generated surplus.
What could change GPC’s dividend?
Management expects 2026 free cash flow of $550 million–$700 million. The lower end is below the annual dividend implied by the current payout, about $586 million. The higher end provides room, but acquisitions, debt repayment and separation costs will compete for it.
What is GPC’s dividend yield today?
Dividend yield is annual dividend per share divided by the share price. GPC’s annual dividend rate of $4.25 produced a yield of approximately 3.44% at the October 20, 2026 closing price. The U.S. 10-year Treasury yield was 5.12% on October 20, 2026, so GPC’s dividend offered income but not an obviously superior yield without the possibility of future share-price change.