Here’s How I’m Spending My CRA Grocery Rebate This Summer

The Grocery Rebate will provide you with some cash this summer, which is why you should pay yourself first and invest.

Last year, Dalhousie University released the annual Canada Food Price Report. In the 2023 edition, the report projected that there would be a 5% to 7% food price increase through 2023. Moreover, an average family of four would see their food costs increase by just over $1,000. The Government of Canada introduced a Grocery Rebate to provide support to eligible Canadians who are faced with these higher prices. Today, I want to discuss what Canadians will have expected to receive from this rebate. Moreover, I want to target two stocks that are worth spending the rebate on before the end of the summer.

What kind of CRA grocery rebate should you expect this summer?

A single Canadian citizen with no children could receive a maximum of $234 for the grocery rebate. Meanwhile, a married citizen with no children can expect to receive a maximum of $306. However, a single or married Canadian with four or more children could expect to be issued a maximum of $628 from the Government of Canada. These numbers will not stop anyone in their tracks, but these cheques could provide some temporary relief as food prices continue to pinch consumers.

Here’s the first TSX stock I’d snatch up with my rebate

Metro (TSX: MRU) is a Montreal-based company that operates as a retailer, franchisor, distributor, and manufacturer in the food and pharmaceutical sectors in Canada. Shares of this grocery retail stock have dipped marginally by 0.11% month over month as of mid-afternoon trading on Wednesday, July 26. The stock is now down 3.2% so far in 2023. However, the interactive price chart below illustrates Metro’s consistency over the last five years.

Investors can expect to see the company’s next batch of results in the first half of August. In the second quarter (Q2) of fiscal 2023, Metro delivered sales growth of 6.6% to $4.6 billion. Meanwhile, food same-store sales increased 5.6% and pharmacy same-store sales posted growth of 7.3%. Metro achieved adjusted net earnings growth of 10% to $225 million while adjusted fully diluted net earnings per share jumped 14% to $0.96.

Shares of this grocery stock currently possess a favourable price-to-earnings ratio of 19. Metro offers a quarterly dividend of $0.302. That represents a modest 1.6% yield.

This TSX stock and dividend aristocrat is also on my radar in July 2023

Empire Company (TSX: EMP.A) is a Nova Scotia-based company that is engaged in food retail and related real estate businesses in Canada. Its shares have dipped 1.4% month over month at the time of this writing. The stock has increased marginally in the year-to-date period.

This company unveiled its Q4 and fiscal 2023 earnings on June 22. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and aims to give a more accurate picture of a company’s profitability. Empire reported adjusted EBITDA of $598 million in Q4 – up from $586 million in the previous year.

Empire stock last had an attractive P/E ratio of 13. Moreover, this stock offers a quarterly dividend of $0.182 per share, which represents a 2% yield.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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