Linamar (TSX:LNR) & Maple Leaf (TSX:MFI): 2 Dividend-Paying Consumer Stocks

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Linamar (TSX:LNR) & Maple Leaf (TSX:MFI): 2 Dividend-Paying Consumer Stocks

 Linamar (TSX:LNR) & Maple Leaf (TSX:MFI): 2 Dividend-Paying Consumer Stocks

Summary

  • Linamar is offering a quarterly dividend of C$ 0.12 per stock. Its stock has a present return on equity (ROE) of 5.07 per cent.
  • Maple Leaf delivered a constant quarterly cash dividend of C$ 0.16 per unit this year. Its stock offers an ROE of 5.42 per cent.
  • Both consumer goods stocks have yielded double-digit returns in 2020.

 

Most consumer and retail companies sliced dividend payments amid the onslaught of COVID-19. However, two companies stand out – not just for consistently distributed cash dividends to their unitholders, but also for a strong stock performance during these hard times. These two dividend-paying consumer stocks also offer a positive year-to-date growth.

We’re talking about Linamar Corporation and Maple Leaf Foods:

 

Linamar Corporation (TSX: LNR)

Current Stock Price: C$ 67.72

 

The vehicles part company holds a current dividend yield of 0.693 per cent. It pays a quarterly cash dividend of C$ 0.12 per unit. Its present market cap stands at nearly C$ 4.4 billion.

The mid-cap stock has jumped over 77 per cent up in the last six months. The consumer scrips indicate a 38 per cent surge year-to-date (YTD). Linamar has been placed among TMX Money’s top price performer companies that have outperformed its peers on the TSX and TSX Venture (TSXV), with the largest price gains in the last 30 days. It also made it to TMX’s top consumer goods companies that have surpassed their peers across the TSX and TSXV in the last 30 days.

Stocks of Linamar offers a positive return on equity (ROE) of 5.07 per cent. The stock’s price-to-earnings (P/E) ratio is 20.80. Its present profit-to-book (P/B) ratio is 1.048, and current earnings per share of C$ 3.31 as per the TMX portal.

In the third quarter of 2020, the company reported total sales of C$ 1,637.4 million, a C$ 102.6 million decline, compared to C$ 1,740.0 million in Q3 2019.

Maple Leaf Foods Inc. (TSX: MFI)

Current Stock Price: C$ 28.24

 

The consumer-packaged meats company has delivered a constant quarterly cash dividend of C$ 0.16 in 2020. The food company has a current dividend yield of 2.264. Its 3-year dividend yield growth stands at 14.69. Maple Leaf has a current market of nearly C$ 3.5 billion.

Units of the meat company have increased by 11 per cent year-to-date. However, the stock is trading nearly flat in the last six months. This mid-cap company also made it to TMX’s top consumer stocks.

The stock has a return on equity (ROE) of 5.42 per cent, and a return on assets (ROA) is 2.93 per cent. The stock is offering earnings per share of C$ 0.86. Its price-to-book (P/B) ratio is 1.804, and the present price-to-earnings (P/E) ratio is 33 as per the TMX website.

The company recorded a sales growth of 6.2 per cent in its third quarter of the fiscal year 2020.  The food company posted net earnings of C$ 66 million in Q3 FY20, against C$ 13.4 million in Q3 FY 19.

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