Is This Canadian DIVIDEND Stock A Buy? | EMP.A.TO (Empire Company LTD)

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In this video, I'll share my research on Empire Company LTD, ticker EMP.A.TO. We'll talk about whether this is an excellent Canadian dividend stock to buy today!

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Is This Canadian DIVIDEND Stock A Buy? | EMP.A.TO (Empire Company LTD)

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19 Comments

  1. Hey Brandon I’m only 3 minutes in I was very surprised you didn’t bring up farm boy which is another brand they own that caters to higher net worth individuals with ALOT of their own products on shelves I live in Toronto and they are popping up in a bunch of places

  2. I did some quick number-crunching on the Canadian consumer defensive stocks a couple months ago and came to the conclusion that EMP had “the most value”. I didn’t realize until this video that the main reason the stock seemed more attractive was because it has been such a laggard compared to it’s competition!
    I’m only 30, I need to be looking for more growth oriented stocks. As much as I’d like to buy Sobeys (I live 20 min away from their headquarters in Stellarton, Nova Scotia, my sister works at Sobeys, etc.), I’m with Brandon on this one, Loblaws seems like the better buy IF I was going to buy a consumer defensive stock in the first place.

  3. I think if you’re going to talk about Empire you HAVE to talk about customer fulfillment centers (CFC), the technology behind these is amazing and it’s a bet that could have a huge payoff for the company as online grocery shopping takes off

  4. I chose Empire over Loblaw because my local grocery store is a Freshco. Before that it was a Price Chopper. Almost all of my groceries have come from discount stores. I’ve kept the stock as a dividend growth play, similar to ATD.
    When I bought Empire in 2021, they were the 2nd biggest grocery store by market cap but times have changed. To be honest Loblaw was a better pick but more expensive per share which dissuaded me from them. In hindsight, they would’ve been the better play from a dividend growth perspective because although they had a higher p/e (20 vs 15) their dividend has grown more (~10% vs ~20%) and in 5 years its been more drastic.
    I never thought of Empire suffering because of private labels. For me, the reason why Loblaw has done well during the pandemic is because of market share. Loblaw is probably following WalMart with prioritizing customers over workers without overstepping either so that they get publicly scrutinized.
    Empire has come out with new things over the past few years like Voila! and adding Scene+ to their system. They also bought out Longo’s in Ontario.
    I didn’t read their annual report for last year because I completely forgot about it. Scene+ is going to be their loyalty system and I have a card already and have seen people try to buy the products that will give them points. It seems that because of their Longo’s acquisition they had to issue 3M shares back in 2021. Maybe thats one of the reasons they struggled this year.
    All in all I think the company is priced fairly, but they have a long way to go to gain market share.

  5. I appreciate videos like this one; you are making good points but have missed probably the biggest reason why considering investing in Empire.

    Good points: for example in markets like in Quebec both Loblaws and Metro have very popular low cost chains like Maxi and Super C; Empire has nothing. IGA stores are a premium brand competing with Metro and may be the most expansive chain to shop at.

    Investing interest: Empire has heavily invested in its E-Commerce division called Voilà and has a huge technical advantage over any of its competitors in Canada. If E-Commerce continues to growth it will take years for Metro and Loblaws to catch up and none of them will have access to the same technology.

  6. great video Brandon!!! this is all good to know. i love how you went in depths with 1 particular stock… especially dividend stock

  7. Nice video. Regarding the margin thing, the other reason I can think of is that might be Loblaws has more in house brands akin to what Kirkland is for Costco and hence, that can lead to higher margins.

  8. Honestly I think Empire is not a good company to buy. I know people obviously blossom like the company, but most of those people on there have no idea what they are doing

  9. Nice but your videos sometimes are unnecessarily too long sometimes. This one 5-10 mins is enough to put everything together. Great work tho

  10. Being from NS, the home of Empire, I put Empire on the same level as New Brunswick’s Irving family. They are among the wealthiest families in the region and know how to make money. They will always make money. It’s interesting you put Safeway in a premium category. I think Empire picked up Safeway many years ago and in this part of the company I always saw Safeway as a low end grocery. This tells me that Empire expanded the brand in the rest of Canada as a premium brand.
    I think with both Loblaws and Empire, its all about psychology and target audience. Loblaws has clearly targeted the masses on the lowest price, whereas Empire has tried to sell themselves as the premium brand. It is well discussed here how expensive Sobeys is over Loblaws. In my opinion, Empire is looking to increase the wealth within the Sobey family whereas Loblaw is looking to grow the company publicly…and is winning. But Sobeys is ok with that for now, being as wealthy as they are and continuing to grow that wealth within.
    For these reasons, as an investor, I think I would go with Loblaws for my own wealth building over Sobeys focused on building their wealth

  11. This company will always have its own customers.. I live in Montreal, and my family and friends have a rule, if you want cold cuts, cheese, or good meat to grill, raw or cooked fish, cooked meals, baguette ….you only go to IGA. Anything that is packed and sealed, you buy it from Walmart, Loblaws, Provigo, Metro … and Costco for anything else. I don’t know about BC, but in QC, IGA is the only place that offer quality.

  12. Empire Company is in the Top 10 of Dividend Aristocrat stocks with a WHOPPING 28 years of dividend growth. Not one person has mentioned this, unreal, you guys got a lot to learn about longer term track records. Notorious B.I.G. “If you don’t know, now you know”.

  13. Appreciate a video with some research and understand why you came to your conclusion on this one. So many of these youtube “gurus” are just thinly veiled advertisements. Nice job!

  14. You shouldn’t include George Weston in your list of competitors. WN holds Weston Foods (a distributor) and a controlling interest in Loblaws.

    The biggest change in Empire is their new loyalty program. I have mostly stopped shopping at Sobeys because their Air Miles partnership gave me very little value compared to the Superstore’s PC Plus program. The switch to Scene+ may help bring customers like me back if it turns out to be competitive. Empire also will have more control over the program since they are joint owners along with Cineplex and Scotiabank.

  15. I really appreciate the videos like this too. You go through the research and considerations you take while looking at a company, and give reasoning and analysis on why the company isn’t the best play. I’ve been going through companies and had a few that I wasn’t sold on, I do think it’s very important to see the process of researching a stock and not liking it. They all can’t be winners!
    On a side note, I did switch from zehrs (loblaws) to Freshco about a year back. I just got to a point I noticed the price markup at zehrs to freshco, it honestly adds up to $15-20 saved for a $80 bill, zehrs doesn’t give me anything “premium” that makes the markup worth it.

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