This winemaker has plans to boost your value

Article Excerpt

Your Andrew Peller dividend, even after the latest increase, yields a solid, but modest 1.8%. However, the outlook for this small-cap stock is strong enough to fuel your returns. Peller stands to gain as aging baby boomers drink more wine instead of beer. It also continues to diversify into upscale spirits—popular with millennials. These trends set you up for higher dividends and share price gains. ANDREW PELLER LTD. $12 is a buy for investors. The company (Toronto symbol ADW.A; Conservative Growth Payer Portfolio, Consumer sector; Shares o/s: 44.2 million; Market cap: $530.4 million; Dividend yield: 1.8%; Dividend Sustainability Rating: Above Average; www.andrewpeller.com) began operating in 1961 and is now Canada’s second-largest producer of wines, after Arterra Wines (formerly the Canadian division of Constellation Brands.) Its wineries in Ontario, British Columbia, and Nova Scotia account for 27.9% of Canada’s wine market by total volume. The company’s main brands include Peller Estates, Thirty Bench, Grey Monk Estates and Wayne Gretzky Estates. With the July 2019 payment, Peller raised…