October 22, 2014

Canadian Dividend Stocks In Food & Agriculture

Known as one of the largest agricultural producers and exporters in the world, Canada can count on its large prairies (Alberta, Saskatchewan & Manitoba) to produce crops and vegetable and on the Okanagan Valley (British Columbia) to produce wines of high quality.

 

Canada is not only known for its producing capacities but also for the high quality food it processes. Our companies benefit from advanced technologies and they are leaders in biological and organic agricultural development. They basically have the winning conditions: abundant and cheap energy sources, water, natural resources and strict food quality regulations. Instead of focusing on production only, Canadian companies have a more quality focus and this is why it is so good to eat in Canada compared to anywhere in the world.

 

okanagan valleySince Canada is one of the largest countries in the world, it provides it a great advantage for agricultural. This is how several companies have emerged from this sector. We tend to forget about food companies when we think of Canadian dividend stocks but you could be surprise to find a few gems in there.

 

Those dividend stocks are probably underrated because their growth is not as sexy as the Telecoms and their profit not as important as Canadian banks. This is because they evolve in a mature industry and faces now competitors with lower cost structures coming from emerging markets. Nonetheless, those companies show a great history of stable dividend payoff.

 

In addition to the agricultural market, we can found other great dividend payers among the food industry. The major grocery chains own the vast majority of the market and they earn some decent cash flow. They also have the habit of keeping their dividend payout ratio to a low level to insure a steady dividend growth.

 

At Canadian Dividend Stocks, we currently follow 6 stocks related to the food and agricultural industry (click on the Name of each company to see the full analysis):

 

Metro – MRU/A

Loblaw – L

Alliance Grain Traders – AGT

Canada Bread – CBY

George Weston – WN

Premium Brand Holdings Corporation – PBH

 

 

image source

Speak Your Mind

*