Andrew Peller Ltd. Delivers a 4.9% Yield from Its Diversified Wine Empire

Andrew Peller Ltd. offers a high 4.9% yield while trading at an attractive price/earnings ratio

Andrew Peller’s operational turnaround is evident in its return to profitability. And with a forward P/E ratio of just 10.6 based on its fiscal 2026 earnings estimate, the stock trades at an attractive price.

Meanwhile, the company’s focus on operational efficiency, debt reduction, and profitability provides a solid foundation for sustainable value creation.

ANDREW PELLER LTD. (Toronto symbol ADW.A; www.andrewpeller.com) is Canada’s second-largest wine producer after Arterra Wines.

In its fiscal 2026 first quarter, ended June 30, 2025, Peller’s sales fell 0.3%, to $99.2 million from $99.5 million a year earlier. Higher sales in Western Canada offset lower sales at its standalone retail stores in Ontario due to the availability of wines at supermarkets and other stores.

Thanks to a cost-cutting plan that reduced its glass and freight costs, earnings in the quarter were $0.11 a share (or a total of $4.55 million), a considerable improvement from the loss of $0.01 a share (or $375,000).

Peller is positioned to withstand tariffs

Peller imports some of its wine, concentrates and packaging materials from a wide range of other countries, including the U.S., so tariffs could increase its costs. However, in response to U.S. tariffs on Canadian products, provincial liquor boards have stopped importing U.S. wines. That should help spur sales of Peller’s products.

A cost-cutting plan will also save $30 million.
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All in all, Andrew Peller’s bright future reflects its strong operational execution cost cutting as well as its strategic positioning in Canada’s evolving beverage alcohol market.

The firm’s diversified operations across wine production, craft beverages, and multiple distribution channels provide defensive characteristics while enabling participation in growth segments of the Canadian beverage market. With production facilities in B.C., Ontario, and Nova Scotia, and sourcing from premium wine regions including the Niagara Peninsula and Okanagan Valley, Peller maintains competitive advantages in quality and supply chain control.

Peller last raised your quarterly dividend by 10% with the July 2021 payment. The annual rate of $0.246 per class A share yields a high 4.9%. The company has consistently paid dividends since 1979.

In fiscal 2026, the company will probably earn $0.47 a share, and the class A shares trade at a low 10.6 times that estimate.

Recommendation in The Successful Investor: Andrew Peller Ltd. is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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