Lower costs support their dividends

Article Excerpt

These two beverage makers continue to lower costs and improve efficiency, which will help shield them from any rising input and other costs due to tariffs. For your new buying, we prefer Andrew Peller over Molson Coors. ANDREW PELLER LTD. $5.11 (class A) remains a buy for long-term gains. The company (Toronto symbol ADW.A; Conservative Growth Payer Portfolio, Consumer sector; Shares outstanding: 43.4 million; Market cap: $221.8 million; Dividend yield: 4.8%; Dividend Sustainability Rating: Above Average; www.andrewpeller.com) is Canada’s second-largest wine producer after Arterra Wines. Peller last raised your quarterly dividend by 10% with the July 2021 payment. The annual rate of $0.246 per class A share yields a high 4.8%. In its fiscal 2025 third quarter, which ended December 31, 2024, sales increased 5.2%, to $105.4 million from $100.2 million a year earlier. This increase was due to Ontario’s plan to let more supermarkets and other retailers sell beer and wine. Due to ongoing cost-saving initiatives, the company earned $7.7 million, or $0.18 a share, in the…