Topic: How To Invest

Dividend Advisor Hotline – Friday, September 14, 2018

Article Excerpt

LOBLAW COMPANIES LTD., $66.45, Toronto symbol L, operates 1,083 supermarkets across Canada. It also owns the Shoppers Drug Mart chain of 1,335 drugstores. The company plans to transfer its 61.6% stake in CHOICE PROPERTIES REIT $12.73, Toronto symbol CHP.UN, to its parent company George Weston Ltd., Toronto symbol WN. (Note—Weston is a recommendation of our Canadian Wealth Advisor newsletter.) With the transfer of the Choice Properties’ units, Loblaw shareholders will receive 0.135 of a Weston common share for each L share they hold. They will not have to pay capital gains taxes until they sell their new Weston shares. Weston (which currently owns 50.1% of Loblaw) also holds 3.8% of Choice. Following the transfer, it will own 65.4% of the REIT. As well, Loblaw shareholders will hold 16.8% of Weston’s shares. After the exchange, Loblaw plans to maintain its current annual dividend rate of $1.18 a share (which yields 1.8%). In addition, Weston will raise its quarterly dividend by 5% to $0.515 a share…

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