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Thursday, June 22, 2017

The North West Company, which operates the Northern, North Mart and AC Value retail brands, is the best income stock in Canadian retail, according to a Seeking Alpha article.

“Every business they operate has an incredible moat and is immune to e-commerce,” the article says. “The key to North West's success is simple, they operate where no one else will. The company's defensive stores, solid dividend and history of proven execution make the name an excellent buy for income-oriented investors.

“North West operates monopolies in North America's most remote communities. In most of these communities, their banners are the only name in town and often receive a heavy subsidy,” according to the article. “The Canadian federal government has put heavy emphasis on improving nutritional quality in northern communities and has grown subsidies dramatically in 2016.

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