Andrew Peller Offers a 5.0% Yield at a Bargain Valuation

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 British Columbia, Ontario, and Nova Scotia, and sourcing from premium wine regions including the Niagara Peninsula and Okanagan Valley, Andrew Peller maintains competitive advantages in quality and supply chain control.

The company’s track record offers an attractive total return opportunity for investors seeking exposure to the Canadian consumer discretionary sector. With the stock trading at just 10.5 times the company’s forward earnings forecast, this is a buy.

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

In its fiscal 2025 fourth quarter, ended March 31, 2025, Peller’s sales fell 11.2%, to $75.5 million from $85.0 million a year earlier.

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That decrease is largely because the year-earlier quarter included $5.8 million in support payments from the Ontario government; in fiscal 2025, the company recorded those payments throughout the year instead of reporting all in the final quarter like it did the previous year.

Thanks to a cost-cutting plan, losses in the quarter improved to $0.02 a share (or a total of $747,000) from $0.17 a share (or $6.9 million). For all of fiscal 2025, the plan cut Peller’s costs by $10.7 million.

Dividend Stocks: Tariff effect should be offset by higher sales in Canada

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.

In fiscal 2026, the company will probably earn $0.47 a share, and the class A shares trade at a low 10.5 times that estimate.

Peller also continues to pay a quarterly dividend of $0.0615 a share; the annual rate of $0.246 yields a high 5.0%.

Recommendation in The Successful Investor: Andrew Peller Ltd. is a buy for long-term gains.

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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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