These supermarkets earn our Highest rating

Article Excerpt

Shares of these two supermarket operators continue to hit new highs as COVID-19 lockdowns keep consumers eating at home. Those higher earnings also let them continue to raise your dividend. In fact, both dividend payers carry our Highest sustainability rating. LOBLAW COMPANIES LTD. $75 is a buy. The company (Toronto symbol L; Conservative-Growth Dividend Payer Portfolio, Consumer sector; Shares o/s: 342.1 million; Market cap: $25.7 billion; Dividend yield: 1.8%; Dividend Sustainability Rating: Highest; www.loblaw.ca) operates 1,098 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills. It also operates 1,345 Shoppers Drug Mart stores. Loblaw last raised its dividend by 6.3% with the December 2020 payment. The annual rate of $1.34 yields 1.8%. In the first quarter of 2021, overall sales rose 0.6%, to $11.87 billion from $11.80 billion a year earlier. Same-store sales for the supermarkets rose 0.1% from a year earlier as higher prices offset a drop in higher customer purchases per visit. As well, online sales…