5 Canadian Consumer Stocks Rewarding Their Shareholders

Five years ago, I created Dividend Stocks Rock. The idea was to build the most comprehensive and effective dividend investing platform. Throughout the past five years, our portfolios have done very well (see for yourself). A key part of this success is attributed to asset allocation.

For our Canadian portfolios, we went against the current and diminished our energy position to a minimum. To this date, I’m still not a fan of energy dividend stocks. I keep a very small amount of companies on my watch list.

On the opposite, I’m a big fan of both consumer defensive and consumer cyclical stocks. The first sector adds stability to your portfolio and provides investors with steady dividend growth. The latter is all about growing through healthy economies. A mix of both was definitely a winning strategy for the past five years. Here are five of my favorite consumer (defensive or cyclical) companies on the Canadian market.

Metro (MRU.TO)(MTRAF)

Metro operates over 600 grocery stores under banners such as Metro, Super C, and Food Basics. It is mainly active in Quebec and Ontario. Metro also has a pharmaceutical sector operating 250 drugstores under banners such as Brunet, Clini Plus, and Pharmacy & Drugs basics. Finally, Metro operates a pharmaceutical distributor named McMahon, which has about 200 affiliated pharmacists. Metro completed the acquisition of Jean Coutu in May of 2018.

Metro has put a strong emphasis on its private-label brands which sell for 20% less than original products. In a world where price is the first consumer driving decision factor, this is a key advantage. We like the recent acquisition of Jean Coutu as we believe it will give additional stability in Metro’s business model. Plus, the company has the possibility of unlocking values to shareholders by spinning-off its real estate business. Metro is well established in two provinces with strong economies; Quebec and Ontario. Metro is also pushing its online services to gain additional customers.

1 2 3 4
View single page >> |

Disclaimer: We are long all of the above.

Each month, we do a review of a specific industry at our membership website; Dividend Stocks Rock. In addition to have full access to 12 real-life ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.