The Canadian value stocks we’ve identified offer the best combination of value and safety
SmallCapPower | October 20, 2020: October has historically been one of the worse months for stocks, but there are some names out there that offer the best combination of value and safety. Today we have weeded out three dividend-paying Canadian value stocks that are best positioned to withstand a market selloff.
*Returns are based on closing stock prices as of October 19, 2020
The North West Company Inc. (TSX:NWC) – $34.54
North West Company is a retailer of food and everyday products and services to rural communities and urban neighbourhoods in Canada, Alaska, the South Pacific and the Caribbean. North West operates 250 stores under the trading names Northern, NorthMart, Giant Tiger, Alaska Commercial Company, Cost-U-Less and RiteWay Food Markets and has annualized sales of about C$2.0 billion. The Company recently announced a 9.1% increase to its quarterly dividend to $0.36 per share. NWC stock has a current dividend yield of 4.2%.
- Year-to-Date Return: 33%
Saputo Inc. (TSX:SAP) – $34.60
Saputo produces, markets, and distributes a wide array of dairy products, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients. The Company is the top dairy processor in Australia, and the second largest in Argentina. In the United States, Saputo ranks among the Top 3 cheese producers and is one of the largest producers of extended shelf-life and cultured dairy products. In the United Kingdom, Saputo is the largest manufacturer of branded cheese and a top manufacturer of dairy spreads. Saputo products are sold in several countries under market-leading brands, as well as private label brands. SAP stock has a current dividend yield of 2%.
- Year-to-Date Return: – 12%
Lassonde Industries Inc. (TSX:LAS.A) – $150.01
Lassonde Industries manufactures various ready-to-drink fruit and vegetable juices and drinks in Canada, the U.S., and globally. The Company sells its products in various packages under various trademarks, most notably the Fruité, Tropical Grove, Allen’s, Del Monte, and Oasis brands. Lassonde products end up in supermarkets, independent grocers, hotels, hospitals, and schools. Revenue in the Company’s most-recently reported quarter (Q2 2020) rose 18.7% year over year to $498.2 million, while its earnings per share surged 67% to $3.75. LAS.A stock has a current dividend yield of 1.7%.
- Year-to-Date Return: – 1%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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