Topic: How To Invest

Dividend Advisor Hotline – Friday, November 26, 2021

Article Excerpt

LOBLAW COMPANIES LTD., $96.44, Toronto symbol L, is a buy. The company operates 1,096 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 operates 1,343 drugstores across Canada. Loblaw last raised your quarterly dividend by 9.0% with the October 2021 payment. Investors now receive $0.365 a share instead of $0.335. The new annual rate of $1.46 yields 1.5%. Grocery sales are now reverting to pre-pandemic levels, particularly as restaurants re-open. However, sales at the Shoppers chain continue to rise on strong demand for COVID-19 vaccines and testing. In the quarter ended October 9, 2021, Loblaw’s overall sales rose 2.4%, to $16.05 billion from $15.67 billion a year earlier. That beat the consensus forecast of $15.89 billion. Same-store sales for its supermarkets rose 0.2% from a year earlier, as higher selling prices offset a drop in the average amount spent per visit. Shoppers Drug Mart’s…

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