North West Company (NWC-T)

Average daily volumes are only 90,000 shares, but NWC pays a hefty dividend yield of 4.22% (huge among the grocers) and safe based on a 21.88% payout ratio. NWC also offers a super-low beta of 0.62. It is safe and defensive. Performance is also consistent. The company has beaten or met its last four quarters. Its PE of 14.34x is in-line with this sector (with Empire trading at 12.87x and Metro close to 20x). Read 3 Deep Value Stocks to Buy Now for our full analysis.

Trades at 13x PE. Offers a bigger yield of 4.5% than the major grocery stocks.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company reports on Thursday. Likes the company somewhat. It’s cheap at 13x earnings and offers a nice, secure dividend. $591M in sales is expected with a $0.73 per share income. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They beat EPS estimates by 4 cents, at 70 cents. EBITDA beat estimates by 20% at $83.6M. Same store sales rose. They continue to benefit from the pandemic and have controlled costs well. Unlock Premium - Try 5i Free

Deals in staples with inelastic demand, running stores in Alaska and remote northern Canada and isolated parts of the South Pacific and Caribbean selling food and general merchandise. These areas are so remote that there is no competition from e-commerce. These are natural monopolies, so NWC enjoys higher margins than a grocer. They're rebuilding their Caribbean stores after the 2017 hurricanes. (4.55% dividend yield, Analysts; Price Target $32.40)