As inflationary pressures continue to ease and consumer spending starts to recover, retail stocks are regaining momentum. If you have $1,000 ready to invest, this might be one of the best sectors to focus on right now. You just need to choose the right companies with a strong track record of delivering growth and a clear path forward.
In this article, I will walk you through two dividend-paying retail stocks to buy that I believe are no-brainers right now.
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North West Company stock
One retail stock that’s looking too good to ignore right now is North West Company (TSX: NWC). This Winnipeg-headquartered retailer runs nearly 230 stores in remote and underserved areas across Canada, Alaska, the Caribbean, and the South Pacific. Its main banners offer everything from groceries to apparel to essential services like post offices and money transfers.
After climbing 17% over the last year, NWC stock is currently trading at $49.09 per share, giving the company a market cap of about $2.4 billion. It also comes with an annualized dividend yield of 3.2%, paid quarterly, which adds a nice bit of passive income while you hold it.
In the first quarter of its fiscal 2026 (ended in April 2025), North West posted a 3.9% YoY (year-over-year) increase in its total sales to $641.4 million with the help of strong same-store sales growth. Similarly, the company’s adjusted net profit rose 14.2% from a year ago to $33.6 million last quarter. These improvements were mainly due to better merchandise assortment, improved shelf availability, and the early results from its operational strategy called “The Next 100.”
While North West has faced higher expenses from tech investments in recent quarters, it’s still managing to grow profit margins. For investors looking for long-term stability with consistent returns, NWC stock appears to be on the right track.
Pet Valu stock
The next no-brainer retail stock on the list is Pet Valu (TSX: PET). This Markham-based specialty retailer runs more than 800 locations across Canada and focuses entirely on the pet food and supplies space.
Over the past 12 months, PET stock has gained around 23% to currently trade at $32.74 per share. It offers a quarterly dividend with an annualized yield of 1.5%, and the business has a market cap of about $2.2 billion.
In the March 2025 quarter, Pet Valu posted a 7% YoY revenue jump to $279.1 million, largely driven by strength in its franchise and wholesale businesses. Even with slightly lower retail sales and some cost pressures, the company’s adjusted net profit rose slightly to $25.4 million.
Encouraged by the strong start of the year, Pet Valu recently reaffirmed its full-year guidance and is planning around 40 new store openings. At the same time, it’s also working on its supply chain transformation, including major investments in distribution centres to keep operations leaner and faster.
With demand for pet-related products staying firm and more Canadians treating their pets like family, Pet Valu’s long-term growth outlook remains strong in a growing industry.
