2 Restaurant Stocks With a Tasty Dividend

Statistics Canada released a report on September 29 that showed the Canadian economy slow in July. This ended an 8-month streak of gains. Still, with the strength the economy has shown this year it may be prudent for investors to focus their attention on consumer staples that thrive in good economic periods.

Keg Royalties Income Fund (TSX:KEG.UN) stock tracks the performance of the Keg Steakhouse + Bar chain restaurant. Shares have declined 3% in 2017 and 3.3% year over year as of the top of the noon hour on September 29. The company reported its second quarter results on August 9. Gross sales were up 6.3% and same-store sales increased 6.5%. Royalty income experienced growth of 7.3%.

The stock boasts a dividend of $0.09 per share representing a dividend yield of 5.4%.

Boston Pizza Royalties Income Fund (TSX:BPF.UN) owns Boston Pizza trademarks in Canada and pays out dividend to investors. The stock has declined 4.9% in 2017 and 0.18% year over year. The company released its second quarter results on August 10. System-wide sales grew 0.6% to $275.6 million. Franchise sales from royalty pool restaurants increased 0.9%. Casual dining restaurants have struggled with growth in recent years as well as attempting to appeal to younger generations that have migrated to other options.

This stock boasts a dividend of $0.12 per share representing a 6.3% dividend yield. Canadian economic growth is expected to slow in 2018 but both of these stocks provide attractive income for a defensive portfolio.