Terrence Leon: Leon

Leon Dept: We re a pretty strongly capitalized company, says Terrence Leon, chief executive officer of the 70-store chain that was founded by his grandfather, Lebanese immigrant Ablan Leon, in 1909, according to Globe and Mail. Based on regular dividends alone, the stock yields 3.5 per cent, and Mr. Leon said the quarterly payment is absolutely sustainable barring a complete collapse of the economy, but I don t think that s coming. Leon s ads may be goofy, but behind the company s playful TV persona is a conservatively run, family-controlled company that keeps a close watch on costs, avoids debt and finances growth with internally generated cash. The company boasts a bulletproof balance sheet with $207.7-million or nearly $3 a share in cash and marketable securities, and it owns most of its stores and the land under them. Leon s marketing savvy and fortress-like finances explain why, even in a soft economy, it was able to boost its dividend by 11 per cent on Nov. 14 its seventh increase in the past 10 years. The dividend is now 40 cents annually, up from 10 cents a decade ago. What s more, the company has kicked out five special dividends in that time, including a payment of 15 cents along with the recent increase. (www.immigrantscanada.com). As reported in the news.