1 Relentless Retail Stock Dipping 5% to Buy Now and Hold for Life

This stock is a top choice for investors, with so many of the names you visit every day under its banner.

Some TSX stocks are made for quick flips. Others are built to last. George Weston (TSX: WN) falls squarely into the second camp. It’s a TSX stock with deep Canadian roots, a diversified business model, and a track record of rewarding long-term shareholders. It’s not flashy. But if you’re looking for a stock you can buy now, hold for life, and sleep soundly while it quietly grows, this might be the one.

shopper chooses vegetables at grocery store

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The stock

George Weston share prices pulled back slightly from recent highs, down around 5% over the past month. That offers a rare opportunity to pick up a blue-chip TSX stock at a small discount. The company has a market cap just north of $33.5 billion and plays a central role in the day-to-day lives of Canadians through two major holdings: Loblaw Companies and Choice Properties REIT.

Loblaw is the country’s largest food and pharmacy retailer. It runs banners like Loblaws, No Frills, Shoppers Drug Mart, and Real Canadian Superstore. It’s a retail empire in every sense of the word, and George Weston owns a controlling stake. Loblaw continues to deliver dependable earnings through all kinds of market conditions, and it’s been aggressively expanding its private-label offerings and digital grocery business.

Choice Properties REIT is George Weston’s real estate arm. It owns a huge portfolio of properties across Canada, many of which are anchored by Loblaw-owned grocery stores. That built-in tenant stability gives Choice Properties a consistent revenue base. It’s also been redeveloping key locations to increase density, adding mixed-use properties that combine residential and retail to unlock new sources of income.

Numbers don’t lie

The latest earnings from George Weston reinforce why the TSX stock remains such a strong long-term hold. In the first quarter of 2025, it reported revenue of $14.3 billion, up 4% from the year before. Adjusted net earnings available to shareholders were $339 million, an increase of nearly 9%. Earnings per share (EPS) came in at $2.58, up 12.2% year over year. Those numbers reflect strength in both its retail and real estate segments and show how well George Weston has managed costs in an inflationary environment.

Loblaw was a major contributor, with revenue growing 4.1% year over year to $14.1 billion. It also saw adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rise to $1.6 billion. Demand for both food and pharmacy products remained strong, and the financial services segment posted higher income as well. On the real estate side, Choice Properties saw a small dip in revenue but still managed solid returns. It reported $347 million in revenue and added $340 million in investment properties after the quarter closed. That speaks to the REIT’s active growth strategy, even as commercial real estate faces broader challenges.

On the income side, George Weston also continues to shine. The TSX stock increased its dividend by 9% this year to $3.58 per share annually. That marks the 12th consecutive year of dividend increases. The yield may not blow you away at about 1.36%, but it’s backed by reliable earnings and a commitment to returning capital to shareholders. That makes it a great fit for those who want dividend growth more than raw yield.

Bottom line

The valuation for George Weston looks reasonable. George Weston is trading at about 29 times earnings, which might seem high at first glance. But when you factor in the quality of the businesses it owns, the long-term growth potential, and its consistent earnings performance, it starts to make sense. It also trades at less than .5 times sales, showing the value of its revenue stream. Its balance sheet is solid, and both subsidiaries have reliable cash flow.

This isn’t a TSX stock that will double overnight. It’s a steady compounder. It rewards patient investors who want to build wealth slowly, with minimal drama. You get the stability of grocery retail, the growth of digital and private-label expansion, and the reliability of income-producing real estate, all wrapped in a single stock.

Fool contributor Amy Legate-Wolfe 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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