The Best Canadian Food Stocks in December 2023

Are you looking for a tasty stock or two? Here are two of the best Canadian food stocks to pick up now at a discount and hold for years.

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Some of the best and often dismissed investment options to consider are Canadian food stocks. Fortunately, the market provides us with plenty of stellar food stocks to consider buying, even during the holiday season.

Here’s a look at two Canadian food stocks you may want to consider buying for your portfolio.

Go for the big fish

The first food stock investors will want to consider is High Liner Foods (TSX:HLF). High Liner is one of the largest frozen seafood companies on the continent. The company both makes and distributes products to markets, big-box stores, and even dining establishments.

Those products are distributed under an assortment of different brands, including Fisher Boy, Mirabel, Catch of the Day, Sea Cuisine, and its namesake, High Liner.

Turning to income, High Liner offers investors a tasty quarterly dividend. As of the time of writing, the yield works out to an appetizing 5.48%. If that yield seems high, it’s because High Liner, like much of the market, has dropped sharply this year.

In fact, year to date, the stock has dropped a whopping 20%. This makes the stock ideal for longer-term investors. And until that recovery does occur, investors can scoop up one of the best Canadian food stocks at a hefty discount.

Maple Leaf Foods: A tasty option for any portfolio

Maple Leaf Foods (TSX:MFI) is another one of the best Canadian food stocks for investors to consider. Maple Leaf is the largest poultry and prepared meats provider in Canada. Few Canadians may realize it, but Maple Leaf also has a growing presence abroad. Specifically, the company has locations in the U.S., Mexico, and Asia.

Despite being a global food company in operation for decades, Maple Leaf has remained a constant staple to Canadians. In fact, the company has revamped itself to the changing tastes of consumers over the years. That includes removing preservatives and simplifying package labelling as well as providing options for non-meat products.

The latest challenges, rising costs and inflation, have impacted the market as a whole.

In terms of results, Maple Leaf Foods saw sales increase by $1,245 million in the most recent quarter, reflecting a 1.1% increase over the prior period. Overall, the company posted a net loss of $4.3 million for the quarter. That represents a massive improvement over the prior period despite the pork market headwinds facing the industry.

By way of comparison, in the same period last year, Maple Leaf posted a net loss of $229.9 million.

Turning to income, Maple Leaf offers a quarterly dividend that currently works out to a yield of 3.35%. The company has also provided investors with an annual dividend increase without fail going back nearly 10 years.

An assortment of the best Canadian food stocks

No stock is without risk during times of market volatility, and that includes even the most defensive stocks. Fortunately, both stocks noted above offer growth and income-earning prospects for long-term investors.

They also trade at a discount right now, making them some of the best Canadian food stocks to buy now.

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 Demetris Afxentiou 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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