The holiday season yielded big results south of the border. Retail sales were up 4.9% from November 1 through December 24. These represented the best retail sales numbers since 2011.
Canadian retailers were similarly optimistic entering the holiday season. A strong economy and a boost in e-commerce business was expected to generate tailwinds for retailers. Numbers are still pending, but let’s take a look at two dividend stocks that could benefit from the holiday spending mania this year.
Reitmans Canada Limited (TSX:RET.A) stock rose 0.24% at the bottom of the noon hour on January 3. Shares fell 27% in 2017. The company released its 2017 third quarter results on November 30. Sales fell 1.3% year over year and the company posted a net loss of $16.8 million compared to net earnings of $7.6 million in the prior year.
Reitmans still announced a quarterly dividend of $0.05 per share representing a 4.7% dividend yield. The company has reported strong growth in its e-commerce business, while scaling back on its brick-and-mortar locations. The stock could be a solid bet ahead of the next earnings release.
Shares of Keg Royalties Income Fund (TSX:KEG.UN) were down 0.90% towards the end of the noon hour on January 3. The Keg Restaurant + Bar chains typically gear advertising in expectation of increased traffic during the holiday season. In the third quarter the Keg saw gross sales increase 1.6% and royalty income jump 2.8%. The stock offers a tasty dividend of $0.09 per share with a 5.7% dividend yield at offering.
