Canadian retail sales were up 0.1% to $49.1 billion in September 2017. Sales increased in five out of 11 subsectors. Seasonally adjusted retail sales declined in Montreal and Toronto but were up in Vancouver. Let’s take a look at two retail stocks that have bucked the trend and offer dividends to owners.
Alimentation Couche-Tard Inc. (TSX:ATD.B) is a Laval-based company that operates over 12,000 convenience stores around the world, with a significant footprint in Canada. Retail sales at convenience stores were up 3.7% in September but were down 0.5% year over year. Alimentation Couche-tard released its fiscal 2018 second quarter results on November 28.
The company reported net earnings of $435.3 million compared to $321.5 million in the second quarter of fiscal 2017. It lost 3,000 store days at its U.S. locations due to the impacts of Hurricane Harvey and Irma. The stock offers a modest dividend of $0.09 per share with a 0.5% dividend yield. Alimentation Couche-Tard stock has climbed 10% in 2017.
Dollarama Inc. (TSX:DOL) stock has increased 59.6% in 2017. Shares were down 1.05% at the bottom of the noon hour on December 11. The company released its third quarter results on December 6. Sales jumped 9.7% to $810.6 million and comparable store sales grew 4.6% year over year. Dollar store retail chains in the U.S. and Canada have performed extremely well in the years following the financial crisis.
Dollarama offers a dividend of $0.11 per share representing a 0.3% dividend yield.