Topic: How To Invest

Dividend Advisor Hotline – Friday, November 17, 2017

Article Excerpt

CANADIAN TIRE CORP., $161.37, Toronto symbol CTC.A, owns 500 Canadian Tire stores. They sell automotive, household and sporting goods. Franchisees run most of the outlets. The company’s other operations include 296 gas stations and 91 PartSource locations; those stores focus on automobile supplies. In the past few years, the company has acquired other major retail chains: Mark’s sells casual and work clothing through 382 stores; and the Forzani Group sells sporting goods and athletic wear through 433 stores, including Sport Chek and Sports Experts. Starting with the March 2018 payment, Canadian Tire will raise its quarterly dividend by 38.5%, to $0.90 a share from $0.65. The new annual rate of $3.60 yields 2.2%. It also reflects the company’s now-stronger three-year outlook. In the three months ended September 30, 2017, Canadian Tire’s overall sales rose 5.6%, to $3.30 billion from $3.13 billion a year earlier. That beat the consensus forecast of $3.29 billion. Overall same-store sales improved 3.9%. In the quarter, same-store sales at the…