Topic: How To Invest

Dividend Advisor Hotline – Friday, November 20, 2020

Article Excerpt

LOBLAW COMPANIES LTD., $64.26, Toronto symbol L, remains a buy. The company operates 1,091 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills. In March 2014, it purchased the Shoppers Drug Mart chain for $12.3 billion in cash and shares. Shoppers now operates 1,347 drugstores across Canada. Starting with the December 2020 payment, Loblaw will increase its quarterly dividend by 6.3%. Investors will then receive $0.335 a share instead of $0.315. The new annual rate of $1.34 yields 2.1%. Meantime, in the quarter ended October 3, 2020, Loblaw’s overall sales rose 6.9%, to $15.67 billion from $14.66 billion a year earlier. That beat the consensus forecast of $15.6 billion. The company saw strong demand for food and other basics as a result of COVID-19 lockdowns as well as a 175% jump in e-commerce orders. Same-store sales for its supermarkets rose 6.9% from a year earlier due to the higher volumes as well as rising prices. Shoppers Drug Mart’s overall same-store sales…

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