Dividend increase: Leon’s

Article Excerpt

LEON’S FURNITURE LTD. $18 (Toronto symbol LNF; High-Growth Payer Portfolio, Consumer sector; s/o: 76.2 million; Market cap: $1.4 billion; Dividend yield: 2.7%; Dividend Sustainability Rating: Above Average; www.leons.ca) has increased the number of stores under its name from 27 in 2003 to today’s 86. In March 2013, it paid $700 million for its main rival, The Brick. That chain has 218 locations across Canada. With the October 2018 payment, the company will raise its quarterly dividend by 16.7%. Investors will now receive $0.14 a share instead of $0.12. The new annual rate of $0.56 yields 2.7%. In the quarter ended June 30, 2018, Leon’s overall sales rose 1.5%, to $546.7 million from $538.9 million a year earlier. Same-store sales gained 0.4%. The company earned $22.6 million in the latest quarter, up 13.2% from $20.0 million a year earlier. Earnings per share rose 7.1%, to $0.30 from $0.28, on more shares outstanding. The jump in profits is the result of better sales, but also cost cutting. Leon’s…