Canadian Tire gives you a 4.5% yield with an attractive growth plan in place (2024)

Member? Login

Canadian Tire gives you a 4.5% yield with an attractive growth plan in place (1)

The Profits from Hidden Value

Learn everything you need to know in 7 Pro Secrets to Value Investing for a FREE special report for you.

Canadian Value Stocks:How to Spot Undervalued StocksPLUS! Our Top 4 Value Stocks

Topic: Value Stocks

September 2, 2024|by Jim Bates

Add Comment

Canadian Tire gives you a 4.5% yield with an attractive growth plan in place (2)

Canadian Tire has offered our investors so much more than hammers and nails. The stock’s up over 1,022% since we first recommended it in The Successful Investor in April 1995.

A strong long-term growth plan that includes store, online business and private-label brand upgrades should help renew its momentum and provide a basis for further long-term gains.

The current 4.5% dividend yield is just as impressive as the share price gains when you consider just how inexpensive the shares are right now.

They trade at just 13.6 times its 2024 forecast earnings.

CANADIAN TIRE CORP. (Toronto symbol CTC.A; www.canadiantire.ca) operates 502 Canadian Tire stores. They sell automotive parts and services, and household and sporting goods; franchisees run most of the locations. The company’s other operations also enrich its outlook. They include 165 stores operating under the PartSource (auto parts) and Party City (party supplies) banners.

Canadian Tire has several other major retail chains: Mark’s sells casual and work clothing through 382 stores; and the Sport Chek Group sells sporting goods and athletic wear through 367 outlets, including Sport Chek and Sports Experts.

Canadian Tire gives you a 4.5% yield with an attractive growth plan in place (3)

The Profits from Hidden Value

Learn everything you need to know in 7 Pro Secrets to Value Investing for a FREE special report for you.

Canadian Value Stocks:How to Spot Undervalued StocksPLUS! Our Top 4 Value Stocks

Notably, the company’s Mark’s chain now plans to open four new stores under the Mark’s WorkPro banner in Edmonton, Toronto, Montreal and St. Catharines, Ontario. These new stores will focus on industrial customers, such as construction workers. Specialized stores like these will help Canadian Tire cope as consumers spend less on non-essential items due to rising interest rates and inflation.

Canadian Tire also provides a variety of banking services, including savings accounts, guaranteed investment certificates (GICs), insurance and credit cards.

In October 2014, the company sold 20% of its Canadian Tire Financial Services business to Bank of Nova Scotia (see below) for $476.8 million.

Canadian Tire has now re-acquired that 20% stake for $895 million. Meanwhile, the transaction will add to Canadian Tire’s 2024 earnings. As well, gaining full control over the financial services division will make it easier to integrate its Triangle customer loyalty program with its credit card business. That should encourage repeat visits and more spending per visit. (The Triangle plan currently has over 11 million active members, which includes 2.3 million credit card holders.)

Canadian Tire also announced that it is conducting a strategic review of the financial services division. That could lead to the sale of shares in this business, or even a spinoff. It expects to complete the review in 2024.

With the March 2024 payment, the company raised your quarterly dividend by 1.4%. Shareholders now receive $1.75 a share instead of $1.725. The new annual rate of $7.00 yields a high 4.5%. With this increase, the company has now raised that payment each year for the past 14 years. Including this latest increase, the company has now raised the dividend by an average of 11.0% annually over the last 5 years.

What’s more, Canadian Tire now plans to buy back $200.0 million of its class A shares in 2024. That’s on top of the $470.0 million it spent on buybacks under the previous plan.

In March 2024, Canadian Tire announced a new alliance with Suncor Energy (symbol SU on Toronto, and a recommendation of The Successful Investor). Suncor is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands. It also operates four refineries (three in Canada and one in Colorado), along with 1,875 Petro-Canada gas stations.

Under this new agreement, Canadian Tire will re-brand over 200 of its gas bars to Petro-Canada stations, but it will continue to own them.

As well, the two companies will let customers who participate in their loyal rewards programs (Triangle for Canadian Tire and Petro-Points for Suncor) earn points when they buy gas at both gas chains.

The deal should encourage more visits and boost the earnings of both companies.

Value Stocks: Revenue and earnings are enhanced by Canadian Tire’s e-commerce gains

Canadian Tire’s revenue rose 3.4%, from $14.06 billion in 2018 to $14.53 billion in 2019. In 2020, revenue growth slowed as the pandemic took hold, rising just 2.3% to $14.87 billion. Revenue then jumped 9.6% to $16.29 billion in 2021 as the economy re-opened. In 2022, revenue then climbed a further 9.3%, to $17.81 billion. In 2023, revenue then fell 6.5%, to $16.66 billion, mostly due to lower consumer confidence hurting demand.

The company’s earnings rose 6.1%, from $870.4 million, or $11.95 a share, in 2018 to $923.3 million, or $13.04 a share, in 2019. In 2020, earnings fell 2.0% to $904.9 million, or $13.00 a share. The company incurred added costs as the pandemic shut stores. Earnings then jumped 42.6% to $1.29 billion, or $18.91 a share, in 2021 as the economy re-opened. In 2022, despite the higher revenue, earnings fell 3.1%, to $1.25 billion, or $18.75 a share. That was due in part to the company making strategic investments relating to its BetterConnected strategy. As well, it incurred higher supply-chain and other costs. In 2023, earnings fell 42.8%, to $716.1 million, or $10.37 a share. Profits fell along with sales, as well as higher costs.

The company reported better-than-expected sales and earnings for the second quarter of 2024, despite weaker consumer confidence. Wetter-than-normal weather also hurt demand for seasonal goods like gardening supplies and sporting equipment.

Canadian Tire’s revenue in the quarter ended July 1, 2024, fell 2.9%, to $4.13 billion from $4.26 billion a year earlier. Even so, that topped the consensus forecast of $4.08 billion.

Overall same-store sales declined 4.6%. At the main Canadian Tire chain, same-store sales also fell 5.6% as lower demand for seasonal and household goods offset better sales of automotive products.

Same-store sales also declined 0.9% at Sport Chek on lower sales of bicycles and athletic clothing. Lower sales of clothing to industrial customers also cut same-store sales at Mark’s by 0.8%.

E-commerce sales totalled $1.1 billion in the past 12 months. That’s equal to 6% of the company’s total retail sales over that same period.

If you factor out unusual items, Canadian Tire’s earnings in the quarter rose 14.3%, to $198.8 million from $174.0 million a year earlier. Due to fewer shares outstanding, per-share earnings improved at a faster pace of 15.6%, to $3.56 from $3.08. That was also much better than the consensus estimate of $2.42.

Part of that earnings gain is due to the company’s plan to improve productivity, including cutting 3% of its workforce.

Canadian Tire’s long-term outlook remains bright. It continues to make progress on its new long-term growth plan, including upgrading its stores, online businesses and private-label brands. Since March 2022, it has refreshed or upgraded more than 15% of its Canadian Tire stores. So far, those improvements are driving higher customer traffic and sales at those upgraded stores.

Canadian Tire will probably earn $11.55 a share in 2024, and the stock trades at 13.6 times that estimate.

Recommendation in The Successful Investor: Canadian Tire Corp. is a buy.

We hope you benefited from this analysis of Canadian Tire. The company is just one of the top-performing stock picks of our Successful Investor newsletter.

Of course, not all our picks over the years have produced these kind of spectacular gains. Some, in fact, have led to losses. But all portfolios need superstar stocks like this to offset those inevitable losses.

Subscribe to The Successful Investor so you can access many more market-leading Buy recommendations for maximum returns.

This post was originally published in April 2023 and is regularly updated.

Comments

Tell Us What YOU Think

You must be logged in to post a comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.

No-risk introductory subscription PLUS 6 FREE Special Reports

YES! I want TSI The Successful Investor

View our privacy policy

Canadian Tire gives you a 4.5% yield with an attractive growth plan in place (5)

Learn everything you need to know in '7 Pro Secrets to Value Investing' FREE Special Report from The Successful Investor.

Canadian Value Stocks:
How to Spot Undervalued Stocks
PLUS! Our Top 4 Value Stocks

Get Your FREE Report Now:7 Pro Secrets to Value Investing

X No, I don’t want to make big money in the stock market.

The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.

This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.

The privacy of the site/store visitor is very important to TSI Network, and is respected at all times. The information we receive from customers helps us to personalize and continually improve your online experience at TSI Network.

We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.

We store subscriber and password files containing personal information securely. These files are stored in secure areas that are not accessible to the general public. We are always working to ensure the security of your personal information.

We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.

What personal information do we collect?

The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.

Automatic Information: We receive and store certain types of information whenever you interact with us. For example, like many websites, we use "cookies," and we obtain certain types of information when your web browser accesses TSI Network.

Information from Other Sources: For reasons such as improving personalization of our service (for example, providing better product recommendations or special offers that we think will interest you), we might receive information about you from other sources and add it to our account information. We also sometimes receive updated delivery and address information from our shippers or other sources so that we can correct our records and deliver your next purchase or communication more easily.

We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.

Although you may be able to access some of our websites without being required to register or provide personal information, certain websites and sections of our websites may require registration. In addition, if you choose to contact us to ask a question, we will collect your personal information so that we can respond to your question.

To make the visitor’s experience on our website easier, we may use per-session “cookies” (session identifiers) to track the state of the visitor session. This “cookie” is destroyed when your session with our website is over.

Cookies are alphanumeric identifiers that we transfer to your computer's hard drive through your web browser to enable our systems to recognize your browser and to provide features like "Remember Me" for our paying subscribers. Cookies are also used during the ordering process to help ensure your order is handled correctly. We do not extract any information about individual users or their computers as a part of this process.

The "Help" portion of the toolbar on most browsers will tell you how to prevent your browser from accepting new cookies, how to have the browser notify you when you receive a new cookie, or how to disable cookies altogether. However, cookies allow you to take full advantage of some of TSI Network's most useful features, and may be required to access certain areas of our website.

Internet Protocol (or IP) addresses are collected for all visitors to this site. This information is used for the purposes of traffic analysis.

Does TSI Network Use the Information It Receives?

"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.

Purchases of Merchandise: TSI Network websites may offer individuals the opportunity to purchase branded or other merchandise online. In connection with those purchases, customers may be asked to submit personal information, such as shipping addresses and credit card information, which is required to complete the transaction. TSI Network may also offer a Membership program, through which purchasers of its products may receive discounts on their online purchases. Membership registration may involve the submission of personal information to TSI Network and assignment of a user ID and password.

Agents: We employ other companies and individuals to perform functions on our behalf. Examples include fulfilling orders, delivering packages, sending postal mail and email, removing repetitive information from customer lists, analyzing data, providing marketing assistance, processing credit card payments and providing customer service. They have access to personal information needed to perform their functions, but may not use it for other purposes.

Promotional Offers: We may make our postal mailing list available to organizations offering products or services that might interest you. If you prefer NOT to receive these offers, please send an email with your name and address to [email protected] with "Do Not Rent Name" in the subject line. We do NOT make our email list available outside our organization.

Protection of TSI Network and Others: We release account and other personal information when we believe release is appropriate to comply with law; enforce the terms of the Legal notices that accompany this policy; or protect the rights, property or safety of TSI Network, our users or others. This includes exchanging information with other companies and organizations for fraud protection and credit risk reduction.

In addition to these limited disclosures of personal information, TSI Network may provide its affiliates or unaffiliated third parties with aggregate information about visitors to our sites. For example, we might disclose the median ages of visitors to our websites, or the numbers of visitors to our websites that come from different geographic areas. Such aggregate information will not include information of any individual visitors to our websites.

TSI Network may provide personal and other information to a purchaser or successor entity in connection with the sale of TSI Network, a subsidiary or line of business associated with TSI Network, or substantially all of the assets of TSI Network or one of its subsidiaries, affiliates or lines of business.

With Your Consent: Other than as set out above, you will receive notice when information about you might go to third parties, and you will have an opportunity to choose not to share the information.

Except as provided herein, TSI Network will not sell or rent personal information about you to unaffiliated third parties.

We may disclose personal information you have provided through our websites, for the above purposes, to persons or companies that we retain to carry out and other activities for which you have registered or in which you have otherwise asked to participate. In particular, we may for these purposes transfer information to any country (including the USA and other countries which may not offer the same level of data protection as Canada). We also will disclose personal information if required by law, including compliance with warrants, subpoenas or other legal processes.

TSI Network requires persons and companies to which it discloses personal information to restrict their use of such information to the purposes for which it has been provided by TSI Network, to adequately protect the information, and not to disclose that information to others. TSI Network cannot be responsible, however, for any damages caused by the failure of unaffiliated third parties to honour their privacy obligations to TSI Network. Similarly, TSI Network is not responsible for the privacy policies and practices of other websites that are linked to our websites.

COMMENTS: TERMS OF USE

We’re always happy to receive feedback, comments and ideas from TSI Network visitors, and we encourage you to add your perspective to any issue by leaving your comments on the site.

To make sure users get the most out of the site’s comments function, we’ve provided a few guidelines:

  • Do not post threatening, harassing, defamatory, or libelous material.
  • Do not intentionally make false or misleading statements.
  • Do not offer to sell or buy any product or service.
  • Do not post material that infringes copyright.
  • Do not post information that you know to be confidential or sensitive or otherwise in breach of the law.
  • TSI Network will not accept responsibility for information posted in the comments.

Please note that we reserve the right to delete or edit all comments. As well, we may close posts to further comments at our discretion. If a user repeatedly abuses our comment policy, we may also revoke that user’s access to our comments section.

By commenting on TSI Network, you agree that you retain all ownership rights in what you post on the site, and that you will relieve us from any and all liability that may result from those postings.

Special Note for Parents

TSI Network does not sell products for purchase by children. If you are under 18, you may use TSI Network's site only with involvement of a parent or guardian

How do we protect your personal information?

TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.

How do we maintain the integrity of your personal information?

TSI Network has procedures in place to keep your personal information accurate, complete and current for the purposes for which it is collected and used. You may review the information that you have provided to us and where appropriate you may request that it be corrected. If you wish to review your personal information please send a request to: [email protected].

How do I withdraw my consent to use Personal Information? Access, Correction, Inquiries and Complaints

If you wish to request access to, or correction of, your personal information in our custody or control, or find out how we've used or disclosed that information, please make your request in writing to us. We may need to verify your identity before searching for or providing you with personal information. In some circ*mstances, we may not be able to provide access to your personal information, for example if it contains the personal information of other persons, if it constitutes confidential commercial information, or if it is protected by solicitor-client privilege. If we deny your request for access to, or refuse a request to correct, your personal information, we will advise you of the reasons for this refusal.

If you do not want to receive promotional offers, please notify TSI Network by sending an email to [email protected].

How can you ask questions about our Privacy Policy and access your personal information?

The provision of information by you is entirely voluntary and you have the right not to provide information. Subject to applicable law, you may have the right to receive certain information as to whether or not personal information relating to you is held by TSI Network and to obtain a copy of such information that is sought. You may also have the right to require information, where appropriate, to be erased, blocked or made anonymous or to have data updated or corrected. If you do not wish TSI Network to hold information about you or if you wish to have access to information, modify information, or object to any processing of information or if you have questions please contact us.

What Choices Do I Have?

  • As discussed, you can always choose not to provide information even though it might be needed to make a purchase or to take advantage of TSI Network features.
  • You can add or update certain information as explained in the section "How Can I Change My Information?"
  • If you do not want to receive email or other mail from us, please notify TSI Network by sending an email to [email protected].
  • The "Help" portion of the toolbar on most browsers will tell you how to prevent your browser from accepting new cookies, how to have the browser notify you when you receive a new cookie, or how to disable cookies altogether. However, you will not be able to use important features of TSI Network sites if you do not use cookies.

Changes to this Policy

This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.

TSI Network may revise this Policy from time to time.

Legal Notices and Disclaimers

The contents of this web site and our publications are based upon sources of information believed to be reliable, but no warranty or representation, expressed or implied, is given as to their accuracy or completeness. Any opinion reflects the Successful Investor’s judgment at the date of publication and neither the Successful Investor, nor any of its affiliated companies, nor any of their officers, directors or employees, accepts any responsibility in respect of the information or recommendations contained in the publications or on this web site. Moreover, the information or recommendations are subject to change without notice.

Information presented on this web site or contained in our publications is not an offer, nor a solicitation, to buy or sell any securities referred to on the web site or in the publications. The material is general information intended for recipients who understand the risks associated with an investment in any securities referred to in the publications or on this web site. The Successful Investor has made no determination regarding whether an investment, course of action, or associated risks are suitable for the recipient.

CLOSE

Enter Your Log In Credentials
  • Lost your password? Create New Password
  • No account? Sign up
Canadian Tire gives you a 4.5% yield with an attractive growth plan in place (2024)
Top Articles
Page has moved
Proton Mail encryption explained | Proton
Cpmc Mission Bernal Campus & Orthopedic Institute Photos
Automated refuse, recycling for most residences; schedule announced | Lehigh Valley Press
Walgreens Harry Edgemoor
Joe Taylor, K1JT – “WSJT-X FT8 and Beyond”
Walgreens Boots Alliance, Inc. (WBA) Stock Price, News, Quote & History - Yahoo Finance
Bild Poster Ikea
Joi Databas
Frederick County Craigslist
Devon Lannigan Obituary
Directions To Franklin Mills Mall
Federal Fusion 308 165 Grain Ballistics Chart
Crocodile Tears - Quest
Yi Asian Chinese Union
Mercy MyPay (Online Pay Stubs) / mercy-mypay-online-pay-stubs.pdf / PDF4PRO
Www.paystubportal.com/7-11 Login
How to watch free movies online
REVIEW - Empire of Sin
Rosemary Beach, Panama City Beach, FL Real Estate & Homes for Sale | realtor.com®
Moparts Com Forum
Puretalkusa.com/Amac
Grayling Purnell Net Worth
Nevermore: What Doesn't Kill
Why Should We Hire You? - Professional Answers for 2024
라이키 유출
Academy Sports Meridian Ms
Hdmovie2 Sbs
Hdmovie2 Sbs
Lacey Costco Gas Price
Access a Shared Resource | Computing for Arts + Sciences
Danielle Ranslow Obituary
NV Energy issues outage watch for South Carson City, Genoa and Glenbrook
Current Students - Pace University Online
Tire Pro Candler
Diana Lolalytics
Xemu Vs Cxbx
CVS Near Me | Somersworth, NH
2008 Chevrolet Corvette for sale - Houston, TX - craigslist
Srg Senior Living Yardi Elearning Login
Otter Bustr
Empires And Puzzles Dark Chest
Jason Brewer Leaving Fox 25
Best Restaurants Minocqua
Ursula Creed Datasheet
The Listings Project New York
Mitchell Kronish Obituary
The Goshen News Obituary
Divisadero Florist
683 Job Calls
How to Find Mugshots: 11 Steps (with Pictures) - wikiHow
Ark Silica Pearls Gfi
Latest Posts
Article information

Author: Domingo Moore

Last Updated:

Views: 6038

Rating: 4.2 / 5 (73 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Domingo Moore

Birthday: 1997-05-20

Address: 6485 Kohler Route, Antonioton, VT 77375-0299

Phone: +3213869077934

Job: Sales Analyst

Hobby: Kayaking, Roller skating, Cabaret, Rugby, Homebrewing, Creative writing, amateur radio

Introduction: My name is Domingo Moore, I am a attractive, gorgeous, funny, jolly, spotless, nice, fantastic person who loves writing and wants to share my knowledge and understanding with you.