The Canadian economy has impressed in the first two quarters of 2017. However, experts and analysts are warning that Canadians should temper expectations for the second half of the year and 2018. Investors looking to protect their portfolios from economic shocks should look at the following consumer defensive companies which offer solid dividend income.
Andrew Peller Ltd (TSX:ADW.A) produces and markets wine-making products, including brands such as Peller Estates, Trius, Copper Moon, and others. The company released its fiscal 2018 first-quarter results on August 9. The company saw sales increase 0.8% to $88.6 million in the first quarter, as it showed impressive performance in retail locations across Ontario. Gross margin as a percentage of sales increased 40.2% year over year.
Wine is making up a greater market share of alcohol sales and is an extremely popular option among the millennial generation. The stock offers a dividend of $0.05 per share, representing a dividend yield of 1.5%.
Lassonde Industries Inc. (TSX:LAS.A) is a Rougemont-based agri-food company that operates throughout North America. It focuses mainly on production and marketing of juices, drinks, and specialty food products. The company released its second-quarter results on August 11. Sales increased to $383.3 million from $360.2 million in Q2 2016. Operating profit climbed to $33.4 million from the $30.3 million posted the previous year. Lassonde saw more growth and stability in U.S. markets compared to Canadian markets that experienced a decline in sales volumes.
Shares of Lassonde have increased 9% in 2017 as of close on September 27. The stock offers a dividend of $0.61 per share with a 1% dividend yield.
Corby Spirit and Wine Ltd. (TSX:CSW.A)(TSX:CSW.B) is a Canadian distributor of wines and spirits. It boasts over 20% of the total domestic spirit sales. Corby Spirit and Wine distributes brands like Absolut Vodka, Polar Ice Vodka, Jameson, J.P. Wisers, and many others. The company released its fourth-quarter results on August 23. Revenue increased 8% with impressive shipment volumes from Ungava Spirits, J.P. Wisers, and Lambs products. Net earnings climbed 1% to $25.6 million, or $0.90 per share.
Corby stock has experienced growth of 2.2% in 2017 and 2% year over year. The stock also offers a dividend of $0.21 per share, representing an attractive 4% dividend yield.
George Weston Limited (TSX:WN) is a Toronto-based food processing and distribution company that operates in Canada and the United States. Its retail brands include President’s Choice, No Name, Wonder, Country Harvest, and others. The company released its second-quarter results on July 28. Net earnings increased by $27 million to $160 million year over year. Sales were up 2.6% to $509 million compared to Q2 2016. Operating income declined by 7.7% due to a reduction in underlying operating performance.
Shares of George Weston have dropped 4.9% in 2017 and 3% year over year. The stock offers a dividend of $0.46 per share with a dividend yield of 1.7%.
