The Successful Investor Hotline – Friday, June 3, 2016

Article Excerpt

ANDREW PELLER LTD., $26.93, Toronto symbol ADW.A, is Canada’s second-largest producer of wines, after Constellation Brands. In the 2016 fiscal year, ended March 31, 2016, revenue increased 5.9%, to $334.3 million from $315.7 million in 2015. That’s mainly due to strong sales of Peller’s premium-priced brands. Those include the wines it sells under the name of hockey star Wayne Gretzky. Thanks to increased sales and productivity, and lower raw material costs, the company’s earnings in 2016 jumped 26.1% to $19.2 million, or $1.38 a share. In 2015, the company earned $15.2 million, or $1.09. Without unusual items—including an inventory writedown and losses on foreign currency hedging contracts—earnings rose 31.7%. Starting with the July 2016 payment, Peller is raising its quarterly dividend by 8.9%, to $0.1225 a share from $0.1125. The new annual rate of $0.49 yields 1.8%. The company has now increased that yearly rate eight times in the past 10 years. OUR RECOMMENDATION: Andrew Peller is a buy. Andrew Peller recent coverage May…