Topic: How To Invest

The Successful Investor Hotline – Friday, September 7, 2018

Article Excerpt

LOBLAW COMPANIES LTD., $67.80, Toronto symbol L, operates 1,083 supermarkets across Canada. It also owns the Shoppers Drug Mart chain of 1,335 drugstores. The company now plans to transfer its 61.6% stake in Choice Properties REIT, Toronto symbol CHP.UN, to its parent company George Weston Ltd., Toronto symbol WN. (Note—Both Choice Properties and Weston are recommendations 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 1.7%). In addition, Weston will raise its quarterly dividend by 5% to…