Best Canadian Grocery Stocks For February 2024

Dividend Earner

Dividend Earner

Updated on

2 min read Affiliate Disclosure

Food is one thing we all need. It’s one of Maslow’s hierarchy of needs and one of the basic needs we must regularly satisfy. These days, most people get food at the grocery store or a restaurant. Since eating out all the time is financially prohibitive, grocery stores are our primary source of food.

With that said, the grocery business is highly competitive and close to being an oligopoly. New competition often comes in the form of organic and natural food grocery stores or specialty stores providing international culinary items.

While margins are small and competition is fierce, many of the grocery stocks are strong investments.

Canadian Grocery Stocks

The categorization of a company’s sector or industry is managed by the Global Industry Classification Standard (GICS) and it chose to include Alimentation Couche-Tard in the grocery industry.

When you think about it, it makes sense, considering all major grocers also have diversified their business into the fuel and pharmacy businesses. They own a large chunk of the daily necessities we need and control pricing for a profitable business for shareholders (not always for the consumers).

Furthermore, when you look at a grocery stock, note that it may also have a vested interest in a REIT, just like many other retail blue-chip stocks.

As such, the list of dividend grocery stocks to choose from in Canada is outlined below, sorted by market capitalization.

Ticker Ticker Company Market Cap P/E Yield Aristocrat Graph SectorID IndustryID
ATD TSE:ATD Alimentation Couche-Tard 72.53 18.45 0.93 YES 1 4 47
L TSE:L Loblaw 48.41 23.47 1.30 YES 1 4 47
WN TSE:WN George Weston 25.59 20.37 1.71 YES 1 4 47
MRU TSE:MRU Metro 16.86 17.50 1.79 YES 1 4 47
EMP.A TSE:EMP.A Empire Co 8.20 11.20 2.17 YES 1 4 47
NWC TSE:NWC The North West Company 1.83 14.43 4.05 YES 1 4 47

Top 3 Dividend Grocery Stocks

Alimentation Couche-Tard is the only stock with international exposure, which makes it my #1 pick in this industry. As a pure dividend growth stock, the company excels at integrating acquired businesses.

With a solid stock screener, you can narrow down the stocks you need for your portfolio. A good stock screener is a critical tool for investors.

TSE ATD SMALL

Alimentation Couche-Tard

tse:atd | Consumer Defensive | Grocery Stores

TSE L SMALL

Loblaw

tse:l | Consumer Defensive | Grocery Stores

TSE MRU SMALL

Metro

tse:mru | Consumer Defensive | Grocery Stores