Food is one thing we all need. It’s one of Maslow’s hierarchy of needs and is in fact one of the basic needs we must regularly satisfy. These days, most people get food at the grocery store or the restaurant. Being that eating out all the time is financially prohibitive, grocery stores are our primary source of food.
With that said, the grocery business is highly competitive and close to being an oligopoly. New competition often comes in the form of organic and natural food grocery stores or specialty stores providing international culinary items.
Canadian Grocery Stocks
The categorization of company’s sector or industry is managed by the Global Industry Classification Standard (GICS) and it chose to include Alimentation Couche-Tard Inc. in the grocery industry. When you think about it, it makes sense considering all major grocers also have diversified their business into the fuel and pharmacy businesses.
As such, the list of dividend grocery stocks to chose from in Canada is outlined below sorted by market capitalization.
Top 3 Dividend Grocery Stocks
Alimentation Couche-Tard Inc. is the only stock with international exposure and it makes it my #1 pick in this industry as pure dividend growth stock and the company excel at integrating acquired businesses.
#1 – Alimentation Couche-Tard Inc.
Alimentation Couche-Tard is one of the largest Canadian companies and the owner of several Canadian convenience stores. The company also supplies road transportation fuel to approximately 1,300 locations in the U.S. and offers stationary energy and aviation fuel. Couche-Tard caters to more than 9 million global customers daily, offering them merchandise and services (55% of 2018 revenues), motor fuel (43%) and other (2%). As a leading independent convenience store operator, Couche-Tard owns a network of nearly 10,000 convenience stores in 48 states in the U.S., ten provinces in Canada, as well as other countries. It operates more than 16,000 stores worldwide. By geography, the US is its largest market accounting for 67% of 2018 revenues, followed by Europe (20%) and Canada (13%). The company operates through Couche-Tard and Mac’s brands in Canada and Circle K globally. With nearly four decades of experience, Couche-Tard has adapted to the changing customer habits and preferences and has a sound track record of successful acquisitions over the last decade.
Investment Data
#1 – Metro
#1 – Loblaw
DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.
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