Stressed? Get Stability and Income With Loblaw Stock

Loblaw (TSX:L) stock continues to be a solid buy if you’re looking for stable growth as well as income for this year and beyond.

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It’s been an incredibly stressful time for Canadian investors. There are very few companies doing well right now, and it’s causing people to lose sleep, as they wonder how they’re going to afford daily life. If this sounds like you, there is certainly a reason to consider Loblaw (TSX:L).

Performing well, even now

In the last year, Loblaw stock has been one of the few companies that continues to do well, even in this downturn. Shares are up about 20% in the last year, as of writing. Furthermore, earnings continue to come in above estimates.

But honestly, it’s important to look back at the performance of this company as well. Loblaw stock has done well for decades, and, most importantly, it survived during the pandemic as well. The company managed to create new opportunities, including the expansion of its curbside pickup.

Also during that time, Loblaw stock managed to expand its PC Optimum program. You can now collect points everywhere from gas stations to drug stores. This comes after years of acquiring some of the biggest brand names out there.

It all comes together

Loblaw stock is now the umbrella company for some of the most widely known Canadian stores. This includes Loblaw, of course, but also No Frills, Real Canadian Superstore, and Shoppers Drug Mart. Because of this, no matter what the market is doing, Canadians have options to go out and seek the best deal for them.

It’s no wonder that Loblaw stock managed to report strong earnings quarter after quarter. This happened most recently when management announced earnings for the year. Revenue rose 6.3% year over year, with net earnings climbing 2.5%.

Now, there is one item that certainly deserves investor attention in the near future. Loblaw stock has come under fire for seemingly taking advantage of this inflationary environment, raising prices higher than it has to. This still has to be proven in court, and Loblaw isn’t alone in the accusation. But it still has to be proven, as food items climbed 10% in 2022 alone.

Grab stability and income today

Honestly, whatever happens in the near future won’t be a concern if you become a long-term investor. While Loblaw stock is up 20% in the last year, it’s likely to undergo no more than a dip from this news cycle. I hate to say it, but even if accusations are proven true, the news moves on. And if you’re focused on the stock as an investor, then numbers are what matter most.

Therefore, Loblaw is a strong investment if you want less stress in your life. It provides essential services in every manner, including gas, groceries and prescriptions. You can therefore count on it continuing to produce revenue and see it climb for years and decades more.

Meanwhile, you can grab a 1.39% dividend yield as of writing while it trades at a fair 20 times earnings. Shares are up 268% in the last two decades as well for a compound annual growth rate (CAGR) of 6.73%. And those are numbers certainly worth your consideration.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Loblaw Companies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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