Thirsty for growth? 3 TSX stocks that can make you rich!


The Canadian economy had only just started to fall dramatically when the government began to impose lockdowns in March. At the time, I was discussing stocks that can survive and even thrive during a recession. The alcohol industry has long been viewed as more resilient than most during times of economic turbulence. Today I want to take a look at three TSX stocks in this space that I’m excited to enter this fall.The provinces have pledged to take a regional approach to contain the COVID-19 outbreak in the weeks and months to come. The flu season is now weighing on the people. This phenomenon, combined with the ongoing pandemic, is pushing policy makers to scramble to avoid disaster. Many Canadians can be forced back into lockdown mode when the weather gets colder. Just like before, this will likely result in more alcohol consumption.

Why this TSX stock may quench your thirst this fall

Waterloo Brewery (TSX: WBR) is engaged in the production, distribution and sale of alcohol products. This company is the largest Canadian owned brewer in Ontario. Waterloo’s most successful brand is Laker, but it also operates others like LandShark Lager and the beer that bears its namesake: Waterloo Brewing.

The shares of this TSX stock rose 16% in 2020 at the close on September 24. The stock has risen 40% in the past three months. In the second quarter of 2020, Waterloo Brewing saw its net sales increase 44.4% to $ 24.6 million and EBITDA increase 61.5% to $ 5.8 million. Revenue growth increased 34.3% year-to-date to the end of the second quarter.

The board of directors last approved a quarterly dividend of $ 0.2625 per share. This represents a yield of 2.6%.

Bet on wine and spirits with this superior dividend stock

Corby Spirit and Wine (TSX: CSW.A) is a manufacturer, distributor and importer of spirits and wines. Some of the biggest brands under his umbrella include Wiser’s Whiskey, Polar Ice Vodka, Canadian Whiskey Lot 40, and Royal Reserve. Its premium gin – Ungava – has seen an increase in sales in recent quarters. Spirits and wines have seen their market share increase, while beer has declined over the past decade.

Investors were able to take a look at its fourth quarter and full year 2020 results on August 26. Net income for the full year was up 4% from 2019 to $ 26.7 million or $ 0.94 per share. Revenue increased 2% year over year due to improved performance of the brands supported by Corby. It was also stimulated by the improvement of the commissions of the brands represented.

This TSX stock last had a P / E ratio of 16. This puts Corby in favorable value territory relative to its industry peers. Better yet, it offers a quarterly dividend of $ 0.20 per share. This represents a high yield of 5.1%.

The latest TSX share that fits our framework

All the way back in February, I had suggested that investors might hang on Andrew Peller (TSX: ADW.A) at a discount. This Ontario-based company produces and markets wine, spirits and wine-related products. The company released its results for the first quarter of fiscal 2021 on August 5.

Sales increased 3.4% from the previous year thanks to improved purchasing habits of consumers in the face of the pandemic. Like other retailers, Andrew Peller has gone big on his e-commerce offering. This paid off in the first quarter of fiscal 2021. Meanwhile, EBITDA increased to $ 22.6 million – from $ 18.4 million in the first quarter of fiscal 2020.

This TSX stock last had an attractive P / E ratio of 17, which puts it in very attractive territory relative to its industry peers. It last approved a quarterly dividend of $ 0.215 per share. This represents a yield of 2%.

Don’t sleep on these other exciting growth stocks this fall …

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Foolish contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares and recommends CORBY SPIRIT AND WINE LTD CLASS A.


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