Weekly "Focus" and Stretching a Dollar
Bradley Goldhar - Apr 21, 2023
There is a vigorous debate about whether the Canadian and US economies are heading into a recession. So far the economies on both sides of the border are still growing, albeit very slowly and the Bank of Canada believes the Canadian economy is heading towards a “soft landing”. Although recent economic data has been mixed, job growth has been solid over the past number of months. Inflation readings are definitely moderating (Canada’s rate is now down to 4.3%) but it is still pretty painful to check-out at a grocery store. High prices are one reason discount retailers are seeing a pick-up in their business - analysts are expecting annual sales growth this year of between 6% and 11% for the major dollar stores (i). Mind you, can you buy anything for a dollar anymore?
| Company (Symbol) | Price Return in 2023 | Dividend Yield |
| Dollarama* (DOL) | +6.0% | 0.3% |
| Dollar General* (DG) | -11.5% | 1.1% |
| Dollar Tree* (DLTR) | +6.0% | 0.0% |
Source: FactSet, Values as of April 20
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Have a great weekend,
Brad
Bradley Goldhar | Senior Portfolio Manager and Senior Investment Advisor