Topic: How To Invest

Dividend Advisor Hotline – Friday, November 19, 2021

Article Excerpt

CANADIAN TIRE CORP., $173.72, Toronto symbol CTC.A, is a buy. Investors tap the company’s 504 Canadian Tire stores. They sell automotive parts and services, and household and sporting goods; franchisees run most of the locations. Still, the company’s other operations also enrich its outlook. They include 163 stores operating under the PartSource (auto parts) and Party City (party supplies) banners. Canadian Tire has several other major retail chains: Mark’s sells casual and work clothing through 382 stores; and the Sport Chek Group sells sporting goods and athletic wear through 377 outlets, including Sport Chek and Sports Experts. The company has now completed its plan to improve efficiency by closing unprofitable stores and consolidating administrative functions for its chains. These initiatives have cut at least $200 million from its annual costs. Canadian Tire is using those savings to reward its investors. Starting with the March 2022 payment, it will raise your quarterly dividend by 10.6%. Shareholders will then receive $1.30 a share instead of $1.175….