Updating your Conservative-Growth Payers: Andrew Peller Ltd.

Article Excerpt

ANDREW PELLER LTD. $11 is still a buy. The company (Toronto symbol ADW.A; Conservative Growth Payer Portfolio, Consumer sector; Shares o/s: 43.7 million; Market cap: $480.7 million; Dividend yield: 2.0%; Dividend Sustainability Rating: Above Average; www.andrewpeller.com) is Canada’s second-largest wine producer, after Arterra Wines (formerly the Canadian division of Constellation Brands). Its wineries are in Ontario, British Columbia and Nova Scotia. Peller has paid dividends since 1979. As a result of uncertainty caused by COVID-19, it has maintain rather than raised its dividend in 2020. However, the company continues to pay you a quarterly payment of $0.05375 a share; the annual rate of $0.215 yields 2.0%. For the fiscal 2021 second quarter, ended September 30, 2020, Peller’s sales gained 1.0%, to $104.41 million from $103.38 million a year earlier. Higher sales though provincially owned liquor stores and other channels—including its new online store (www.thewineshops.com)—offset lower sales to restaurants. Those customers continue to operate at reduced capacity due to COVID-19 restrictions. Thanks to lower advertising and promotional spending,…