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Summary
- Dollarama has been distributing a quarterly dividend of C$ 0.047.
- Metro Inc pays a consistent quarterly dividend of C$ 0.225 per unit, with a current dividend yield of 1.562 per cent.
- Both retailers saw a jump in their sales in the last reported quarter, led by the COVID-triggered bulk-buying trend.
Retail businesses offering essential goods witnessed a massive surge in demand amid lockdowns, as customers rushed to clear out shelves amid the rising trend of bulk-shopping. As a result, Canadian grocery giants such as Dollarama Inc (TSX:DOL) and Metro Inc (TSX:MRU) recorded substantial increase in their sales over the last year.
Let us analyze these two dividend-paying retail stocks’ performances.
Dollarama Inc (TSX:DOL)
Current Dividend: C$ 0.047
Dollarama Inc’s Board of Directors approved a 6.8 per cent hike in its quarterly dividend in the third quarter of fiscal 2021. The dividend currently has an yield of 0.354 per cent, as per TMX data.
The company has a three-year average dividend growth of 6.59 per cent and a five-year dividend growth of 8.49 per cent.
In the third quarter for fiscal 2021, which ended on 1 November 2020, Dollarama’s sales soared 12.3 per cent to C$ 1,064.2 million. It generated diluted net earnings per share (EPS) of C$ 0.52 in Q3 FY21, an increase of 18.2 per cent year-over-year (YoY).
The grocery stock has yielded nearly 19 per cent growth in the last one year and over eight per cent in the last six months. The stock made it to the list of TMX’s ROE leaders, with a present return of equity (ROE)of 767.29 per cent.
Dollarama currently has a price-to-book ratio of 63.179 and earnings per share of C$ 1.83, while its current return on assets (ROA) is 14.42 per cent, as per TMX data.
Image Source: Kalkine Group @2021
Metro Inc. (TSX:MRU)
Current Dividend: C$ 0.225
Metro Inc’s quarterly dividend currently reflects an yield of 1.562 per cent. It records a five-year dividend growth of 9.18 per cent.
Its stocks returned almost nine per cent in the last one year.
The Montreal-based grocery retailer saw its sales soar by 7.4 YoY to C$ 4,143.6 million in the fourth quarter of fiscal 2020. The company registered net earnings of C$ 186.5 million in Q4 FY20, up 11.4 per cent YoY.
Metro Inc’s ROE currently stands at 12.64, while its P/CF ratio is 10 and P/E ratio is 18.40, according to TMX data. Its current market cap is C$ 14.32 billion.
