North West Company represents an exceptional, inflation-resistant asset that commands a literal consumer monopoly over remote geographies. In vast stretches of Northern Canada and localized island communities, the company’s branches operate as the single viable venue for groceries, basic apparel, health products, and financial transactions. This unique layout provides the firm an unassailable economic moat that operates separately from normal retail market cycles.
Because over 90.0% of their business is weighted directly toward non-discretionary consumer staples, cash flow is highly predictable, secure, and resilient. Meantime, the stock trades at just 15.4 times the company’s forward earnings forecast.
NORTH WEST COMPANY (Toronto symbol NWC; www.northwest.ca) sells food and everyday products and services at 230 stores, mainly in northern communities across Canada, as well as in Hawaii, Alaska, the 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 Company continues dividend growth streak
In its fiscal 2027 first quarter, ended April 30, 2026, overall sales fell 1.5%, to $631.6 million from $641.4 million a year earlier. That’s mainly due to unfavourable exchange rates, which offset a 1.2% rise in same-store sales. Excluding one-time items, earnings fell 9.9%, to $30.3 million, or $0.58 a share, from $33.6 million, or $0.64.
Overall, the long-term outlook remains positive. That’s especially so for its operations in the Northern regions, including Alaska, where the company holds a dominant market position.
With the October 2025 payment, North West raised your quarterly dividend by 2.5%. Investors now receive $0.41 a share instead of $0.40. The annual rate of $1.64 yields 3.2%.
The stock trades at an attractive 15.4 times its projected fiscal 2027 earnings of $3.34 a share.
Recommendation in Dividend Advisor: North West Company is a buy.
