I remember when this stock was a darling of a certain big name mutual fund company in the early 2000s. It performed well for a few years, before heading south and dragging many investors’ returns down with it. It can be difficult to see how a company can be profitable by competing on rock-bottom prices. In that situation, any mistake can erase margins that are already thin.
However, Loblaws (L) has released some good news recently. On May 1, 2013, the company made two announcements. First, they will raise their quarterly dividend by 9%. Second, they will spin off $7 billion worth of their real estate properties into a REIT in July. These are both good news for investors, and the share price has jumped accordingly.
The majority shareholder of Loblaws is George Weston Ltd. (WN), which also experienced an increase in share value. These companies both have positive momentum, among the best in the TSX 60.