On November 24 Statistics Canada revealed operating profits for individual enterprises in the third quarter of 2017. Operates profits in food and soft drink manufacturing rose 7.1% to $1.8 billion. Let’s look at two stocks today that investors can target in this growing industry.
Saputo Inc. (TSX:SAP) is a Montreal-based dairy producer. Saputo stock has declined 5% in 2017. The company released its fiscal 2018 second quarter results on November 2. Net earnings dropped by 3.4% to $185.2 million and revenues increased by 1.4% to $2.88 billion.
Saputo could see a significant shake up in the dairy industry if the Canadian supply management system comes under fire while NAFTA negotiations continue. Leadership has actually endorsed the end of supply management in the past to open itself up to new markets. The stock offers a dividend yield of 1.4%.
Lassonde Industries Inc. (TSX:LAS.A) stock has increased 13% in 2017. The company develops, produces, and markets specialty food products and drinks. Lassonde released its third quarter results on November 10. Revenues fell 2% to $369 million and net income rose 14% to $20 million. Sales fell to $369 million from $377 million in the third quarter of 2016, the company attributed this to a jump in sales of private label products.
Lassonde Industries stock offers an annual dividend of $2.44 per share representing a 1% dividend yield. Investors should be targeting companies in growing industries and both Saputo and Lassonde offer solid dividends while maintaining a strong foothold in the dairy and agri-food sectors.