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Date: 10/13/2016 7:32:38 AM
Author: OperaBob Country Flag
Subject: 3147/3217 - A Canadian Dividend Paying Gem?
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Vulstock on 10/12/2016 10:54:56 AM

[Website Address]

ADUFFY on 10/12/2016 11:31:26 AM

I have never heard of these guys previously but also don't live in a Northern community. Does anyone have any thoughts on how their service is? Barriers to entry for others?

The yield looks reasonably juicy at 4.8% today with a IAD of $1.24 against a share price of $25.83 CDN on the TSX

Vulstock on 10/12/2016 11:53:22 AM

Some history

seijin0201 on 10/12/2016 3:56:42 PM

Interesting find.... Exchange Income Fund Corp subsidiary Calm Air Cargo is pictured on North West Co's homepage.

OperaBob on 10/13/2016 6:32:38 AM

We've discussed them here in the past many years ago.

My concern with them is after I left the north in 1990 a number of the big box stores: Canada Tire, Walmart, et. al. were starting to move north in to smaller communities. Is their moat shrinking.


IKan on 10/13/2016 3:34:29 PM

I owned it for a few years when it was a trust.

Oldest Corporation in N.A..

I am not aware that its moat in the very upper regions of N.A. is decreasing.

It owns ~34 Giant Tiger stores in Canada. GT is expanding well the past few years In Ontario and west with bigger and more stores. 2 stores in my community and there are always people customers in it.


IKan on 10/13/2016 3:36:22 PM

...there are always people customers in it.

As opposed to just regular customers?? Or "Customers." LOL


tendim on 10/13/2016 5:32:39 PM

"In reality, the profits have been so consistent, the company has been able to maintain a rather high dividend payout ratio. Let's take a look at the dividend payout ratio and yield information from past years. The EPS of $1.35 is an estimate for 2016."

Payout ratio has been north of 85% every year except 2012 (when it was 78%). Even though the profits are "consistent", that is hardly much buffer.

This would make a good pick for one of my future analyses, but at a first glance, looks risky dividend wise.

123nicolas on 10/13/2016 7:12:40 PM

"Payout ratio has been north of 85%"

Pun intended?

tendim on 10/14/2016 6:12:40 PM



Didn't even notice I did that. :D

IKan on 10/29/2016 3:01:32 PM

I recall it has always been high.

Revenue growth is limited due to its concentration up north. But it is safe for income.

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