2 Top TSX Food Stocks: What to Watch in July

If there is one thing we always need, it’s food. And these two food stocks offer growth and many long-term opportunities.

| More on:
eat food

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If there is one thing that we will always need, it’s food. No matter what, as the world’s population grows we will only need more and more of it. So, that’s why today, we’re going to look at food stocks — companies that provide stellar growth for long-term holders and should sincerely be considered among your TSX investments.

Today, let’s look at why Nutrien (TSX:NTR) and Loblaw Companies (TSX:L) belong on that list.

Nutrien stock

Nutrien is a leading provider of crop inputs and services, operating through four segments: Retail, Potash, Nitrogen, and Phosphate. This diversified operation enables Nutrien to maintain a strong market presence in distributing crop nutrients, crop protection products, seeds, and merchandise products through its Retail segment.

Despite some fluctuations, Nutrien’s financial performance remains robust. In the first quarter of 2024, Nutrien reported net earnings of $165 million. It also reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.055 billion.

Created with Highcharts 11.4.3Nutrien PriceZoom1M3M6MYTD1Y5Y10YALL6 Apr 20202 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '252021202120222022202320232024202420252025255075100125150www.fool.ca

While these figures were lower compared to the same period in 2023, primarily due to decreased fertilizer prices, there were notable increases in retail earnings and higher fertilizer sales volumes. This financial resilience, combined with strong demand for crop nutrients and protection products, underscores Nutrien’s ability to adapt and thrive in varying market conditions.

As the world transitions towards sustainable agricultural practices, Nutrien’s emphasis on sustainability and efficient crop solutions positions it favourably within the industry. The company’s strategic initiatives and strong financials make it a compelling investment choice in the agricultural sector.

Nutrien offers a competitive dividend yield of 4.09%, providing a reliable income stream for investors. The company declared a quarterly dividend of US$0.54 per share, payable on July 19, 2024. Additionally, Nutrien has announced a share-repurchase program, further demonstrating its commitment to returning value to shareholders. For all these reasons, it certainly deserves consideration.

Loblaw stock

Loblaw stock stands out as a robust investment choice due to its strong financial performance, consistent dividend growth, significant strategic investments, and market leadership. The company’s continued focus on innovation and customer value, coupled with positive analyst outlooks, makes Loblaw a compelling addition to any investment portfolio.

Loblaw maintains its position as Canada’s largest retailer and private sector employer, operating a vast network of 2,500 stores. The company continues to innovate with its popular private label brands and personalized PC Optimum offers, which have driven customer loyalty and higher store traffic. Additionally, Loblaw’s commitment to reducing internal inflation and offering everyday value to customers strengthens its market position.

Created with Highcharts 11.4.3Loblaw Companies PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Loblaw began 2024 with impressive financial results. In the first quarter, the company reported revenue of $13.58 billion, a 4.5% increase from the previous year. This growth was driven by higher store traffic, market share gains in food retail, and increased e-commerce sales by 16.1%. The company’s adjusted EBITDA rose by 6.6% to $1.544 billion, and net earnings available to common shareholders increased by 9.8% to $459 million.

Loblaw is committed to significant investments in the Canadian economy, with plans to invest over $2 billion in 2024. These investments are expected to create over 7,500 jobs, open more than 40 new stores, and expand healthcare services by introducing 140 new pharmacy care clinics across the country. Such strategic initiatives are aimed at enhancing the company’s store network and improving accessibility to affordable food and healthcare services.

Bottom line

When it comes to investments, food is perhaps one of the easiest choices. And when it comes to food stocks, these two have strength behind and ahead of them. So, consider Nutrien stock and Loblaw stock today.

Should you invest $1,000 in CIBC right now?

Before you buy stock in CIBC, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and CIBC wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 no position in any of the stocks mentioned. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Here’s Exactly How a $20,000 TFSA Could Potentially Grow to $200,000

Index funds like the iShares S&P/TSX Capped Composite Index (TSX:XIC) are tax free in a TFSA.

Read more »

Dividend Stocks

How I’d Invest $6,000 in Canadian Real Estate Stocks to Build Lasting Wealth

Canadian REITs on sale! See how grocery-anchored retail properties offering 9% yields could turn $6,000 into lasting wealth despite US…

Read more »

rain rolls off a protective umbrella in a rainstorm
Dividend Stocks

Economic Headwinds: Should You Still Consider Buying the Dip?

A market dip might seem like a bumpy road, but it can be far smoother in the future with the…

Read more »

e-commerce shopping getting a package
Dividend Stocks

Consumer Spending Plays Amidst the Current Market Dip

Consumption may go down in market dips, but certain consumer stocks are certainly better off than others.

Read more »

Asset Management
Dividend Stocks

12% Dividend Yield! I’m Buying This TSX Stock and Holding for Decades

Stocks with high-dividend yields carry risks. But they could be a good long-term investment. Here is a 12% dividend stock…

Read more »

Canadian flag
Dividend Stocks

How I’d Build a Foundation of Canadian Value Stocks in My Investment Strategy

Canadian investors can explore iShares Canadian Value Index ETF for value stock ideas to build a foundation for their diversified…

Read more »

Canadian dollars are printed
Dividend Stocks

How I’d Transform a $30,000 TFSA Into a Cash-Flow Machine

Here's why TFSA investors should consider owning dividend stocks such as Mullen Group in 2025.

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

Dip Buyers Could Win Big in Today’s Market Dip

If you want to buy the dip, think long-term. Which is why this TSX stock is a top option.

Read more »