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Highlights
- The S&P/TSX Capped Consumer Staples Index has gained four per cent year-to-date
- Its biggest constituent going by market capitalization, Alimentation, has risen five per cent in that period and its third-biggest, Metro Inc, by over six per cent
- Both stocks saw their past 12-month highs in March
Come inflation or come a pandemic, consumer goods will likely still move. Some investors may like to own a part of the companies they shop at.
Recent developments seem to have merited the need for retail companies to branch out into e-commerce. Those that survived the pandemic may now have the opportunity to capitalize.
Let us look at two TSX-listed companies involved in this sphere.
Alimentation Couche-Tard Inc (TSX:ATD)
Alimentation Couche-Tard Inc runs a global network of convenience stores. It holds a market cap of over C$58 billion. Its stock last closed on Friday, April 1, at C$55.56.
The ATD stock has gained about 35 per cent in a year and nearly five per cent in 2022. Its 12-month high of C$56.92 was seen just days ago on March 31.
It has an earnings-per-share (EPS) of 4.58 and a quarterly dividend of C$0.11. Its dividend yield is over 0.79 per cent.
Also read: Pembina Pipeline (PPL) & Tourmaline: 2 TSX oil & gas stocks to watch
On March 30, Alimentation said that its "You Donate, We'll Match" campaign that it ran in its European stores in benefit of Ukraine relief, will now be extended to the US and Canada. Proceeds will go to the Canadian Red Cross and American Red Cross teams, the company said.
Metro Inc (TSX:MRU)
Metro Inc is a player in grocery retail and drugstores with Quebec being its biggest market. The company’s market cap is C$17 billion.
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The MRU stock closed Friday at C$71.57. Its EPS is 3.43. The company pays a quarterly dividend of C$0.275 with a dividend yield of about 1.54 per cent.
The stock has returned over 23 per cent in a year and more than six per cent year-to-date (YTD). The stock’s 52-week high (C$72.85) was seen on March 9.
Metro will release its Q2 2022 results April 21.
Also read: BCE Inc (TSX:BCE) & TELUS (TSX:T): 2 communication stocks to consider
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Bottom line
The S&P/TSX Capped Consumer Staples Index has gained four per cent year-to-date. Its biggest constituent going by market capitalization, Alimentation, has risen five per cent in that period and its third-biggest, Metro Inc, by over six per cent.
An ATD stock costs C$55.56 and pays a quarterly dividend of C$0.11. An MRU stock costs C$71.57 and pays a quarterly dividend of C$0.275. Both stocks saw their 12-month highs in March and are currently trading only under three per cent below it.
Also read: BCE Inc (TSX:BCE) & TELUS (TSX:T): 2 communication stocks to consider
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
