Topic: Dividend Stocks

CANADA BREAD CO. LTD. $50 – Toronto symbol CBY

CANADA BREAD CO. LTD. $50 (Toronto symbol CBY; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 25.4 million; Market cap: $1.3 billion; Price-to-sales ratio: 0.8; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.canadabread.ca) reported that its sales fell 3.8% in the three months ended September 30, 2012, to $401.5 million from $417.2 million a year earlier. That’s partly because the company recently closed an unprofitable U.K. plant that made frozen products. Sales of fresh baked goods also declined during the quarter.

If you exclude an unusual tax gain and costs related to the plant closure, earnings per share would have risen 11.6% to $0.96 from $0.86. Higher profits on frozen foods and gains from hedging contracts on raw materials offset lower earnings from pasta products.

Canada Bread is still a hold.

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