Good time to add Loblaw to your portfolio

Article Excerpt

Loblaw’s supermarkets and its Shoppers Drug Mart stores continue to operate during the COVID-19 pandemic as governments consider them essential businesses. Despite additional payments to employees and costs for store cleaning, investors should expect the company’s earnings and dividend to rise in 2020. The crisis is also drawing attention to the company’s new online ordering services, including home delivery and in-store pickup. That trend will also help Loblaw attract more clients to its credit cards and loyalty programs. LOBLAW COMPANIES LTD. $75 is a buy. The company (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 366.1 million; Market cap: $27.5 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.loblaw.ca) is Canada’s largest food retailer with 1,087 supermarkets. Those stores operate under a variety of banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills. Franchisees operate 536 of those outlets. The company’s investors continue to benefit from its March 2014 acquisition of Shoppers Drug Mart for $12.3 billion in cash…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.