Loblaw investors see a pandemic boost

Article Excerpt

LOBLAW COMPANIES LTD. $67 is a buy. Canada’s largest supermarket operator (Toronto symbol L; Conservative-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 362.3 million; Market cap: $24.3 billion; Dividend yield: 1.9%; Dividend Sustainability Rating: Highest; www.loblaw.ca) last raised your dividend by 6.8% with the June 2019 payment. The current annual rate of $1.26 yields 1.9%. The COVID-19-related lockdowns have prompted consumers to stock up on food and other essential items. As a result, Loblaw’s total revenue in the quarter ended March 21, 2020, jumped 10.7%, to $11.80 billion from $10.66 billion a year earlier. Overall earnings jumped 21.4% to $352 million from $290 million a year earlier. Due to fewer shares outstanding, per-share earnings increased 24.4%, to $0.97 from $0.78. COVID-19 increased earnings in the latest quarter by $0.14 a share. share…

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