North West’s unassailable competitive moat in underserved markets represents the foundation of our investment conviction. The firm’s market position faces virtually no direct competition due to logistics complexity, low population density, and first-mover advantages developed over decades. Recent investments in private label products through partnerships, e-commerce capabilities, and a key modernization program further entrench competitive advantages.
Equally attractive for us is the combination of attractive valuation, fortress-like cash generation, and sustainable dividend growth.
All in all, this firm represents an attractive mix of income and potential capital appreciation. It’s a solid pick for your long-term buying.
NORTH WEST COMPANY (Toronto symbol NWC; www.northwest.ca) sells food, and everyday products and services through 230 stores. Those locations are mainly in northern communities across Canada and Alaska. Through your shares, you also tap the company’s operations in remote regions of Hawaii, the wider South Pacific and the Caribbean.
North West’s food offerings consist of perishable and non-perishable products including groceries, dairy, produce, meat, convenience foods, food service, home meal replacement, health and beauty aids, paper products and cleaning supplies. Its general merchandise assortment is broad, and includes family apparel, housewares, sporting goods, toys, furniture, appliances, home entertainment, snowmobiles, all-terrain vehicles (ATVs), boats and outboard motors. The company also offers other everyday products and services such as gasoline, pharmacy and financial services like cheque cashing, ATMs and prepaid card products.
North West owns North Star Air Ltd., a Thunder Bay-based airline. North Star provides cargo and passenger services in the following regions of Canada: northwestern Ontario, northern Manitoba and Nunavut. Its operational hubs are in Pickle Lake, Red Lake, Sioux Lookout and Kapuskasing, Ontario, and Thompson, Manitoba. North Star lets North West provide faster, more consistent delivery of merchandise to its stores in northern Canada that are inaccessible by all-weather roads. North Star’s current fleet comprises 18 aircraft, including three Basler BT-67, seven Pilatus PC-12, five ATR 72, and three Dash 8’s.
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North West is adding its own private labels
In the quarter ended January 31, 2026, overall sales rose slightly, to $675.5 million from $674.9 million a year earlier. Same-store sales rose just 0.5%. That’s because same-store sales for Canadian operations were hurt by the elimination of the Inuit Child First Initiative food voucher program and lower First Nations Drinking Water Settlement payments.
Excluding one-time items, earnings in the latest quarter fell 1.3%, to $43.5 million, or $0.92 a share, from $44.6 million, or $0.93. Earnings were hurt by higher maintenance and weather-related costs.
Overall, the long-term outlook for the company and its investors remains positive. That’s especially so for its operations in the North, including Alaska, where the company holds a dominant market position. Meanwhile, to boost profits, as well as provide its customers with lower-priced products, North West continues to expand its private label offerings.
With the October 2025 payment, the company raised the quarterly dividend by 2.5%, to $0.41 from $0.40. The shares now yield a solid 3.1% for investors.
Recommendation in Dividend Advisor: North West Company is a buy.
