Escalating geopolitical conflicts are continuing to haunt investors, which led to a 4.6% decline in the S&P/TSX Composite Index in March 2026. And market dips can be uncomfortable, especially when they hit stocks you’ve been watching closely. But experienced investors know that these moments often create the best long-term opportunities.
When a fundamentally strong company pulls back, it could offer a much more attractive entry point. Let’s take a closer look at one such TSX dividend stock that could be well-positioned for a strong rally in the long run.
Source: Getty Images
A trusted dividend stock from Canada’s pet care market
Pet Valu Holdings (TSX:PET) has built a strong reputation as one of Canada’s top pet supply retailers. With more than 800 stores operating under multiple banners, it has created a wide network that serves pet owners across the country.
What makes this business really appealing is the nature of demand. Spending on pets tends to remain steady regardless of economic conditions, which gives companies like Pet Valu a solid revenue base.
Despite that, Pet Valu’s shares have dropped by nearly 20% over the last year to currently trade at $21.45 per share with a market cap of $1.5 billion. At this market price, it has a 2.5% dividend yield, with quarterly payouts.
Strong financials highlight steady execution
Despite some market volatility, Pet Valu has continued to deliver solid financial results. In the December 2025 quarter, its system-wide sales jumped 9.2% YoY (year over year) to $423.7 million, while its revenue rose 10.6% to $326.4 million.
Similarly, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 9.4% YoY to $74.6 million, accounting for 22.9% of revenue. At the same time, its adjusted net profit also increased 5.5% YoY to $34 million.
For the full year, its system-wide sales rose 5.6%, while revenue climbed 7.1% from a year ago. These numbers clearly show a company that continues to grow consistently, even in an uncertain economic environment.
Managing costs while continuing to grow
Like many retailers, Pet Valu has faced cost pressures in recent quarters. In the fourth quarter, the company’s gross margin dipped slightly to 33% due to pricing and promotional investments. Even so, the company managed to offset some of these pressures through distribution efficiencies and strong sales growth. Its ability to maintain profitability while investing in growth is an encouraging sign for long-term investors.
Encouraged by these results, Pet Valu recently increased its quarterly dividend by 8% to $0.13 per share.
Why this stock is built for the long haul
Interestingly, Pet Valu ended the latest quarter with 863 stores after opening 14 new locations. For 2026, the company expects revenue growth of 2% to 4%, supported by around 40 new store openings. It also plans to reinvest about $35 million into the business to improve efficiency, pricing, and wholesale expansion.
These initiatives should help it strengthen its competitive position while driving long-term growth. Overall, Pet Valu stock combines several qualities that long-term investors often look for, including stable demand for its products, consistent growth, and a commitment to returning capital to shareholders. Given that, this recent dip looks like an opportunity to accumulate shares of this quality TSX dividend stock.
