#7 - Dollar General (NYSE:DG)
Dollar General Corp. (NYSE: DG) is the other retail/wholesale stock to consider among low beta stocks. Dollar General is a leader in the discount retailer sector. The company caters to low- and middle-income consumers who need to stretch their dollars further. The company is not a dollar store in the strict sense of the word, but in many cases, consumers can buy products at a healthy discount.
The company’s business model focuses on brick-and-mortar locations where it doesn’t face as much competition from big box retailers. In recent years, Dollar General has also beefed up its digital/omnichannel game.
DG stock is up 12.13% in the last five years and pays a dividend with a yield of around 1.13% as of this writing. That’s not particularly impressive, but most of it reflects the stock plummeting by 36% in 2023. Remember, with low beta stocks, you’ll want to play the long game, and DG stock looks like an excellent choice, particularly as the economy improves in the coming years.
About Dollar General
Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine.
Read More - Current Price
- $86.52
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 15 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $113.95 (31.7% Upside)
Beta is useful in both fundamental and technical analysis. However, there's no definitive answer as to what constitutes a good or bad beta. It depends on your goals, risk tolerance, and timeline.
However, correlation doesn't equal causation. That's the one takeaway for investors who want to invest in low-beta stocks. In years when the S&P 500 posts gains of 20% or higher, these stocks are likely to have much lower returns.
Beta also tells you nothing specific about a company's overall health. However, what is consistent about all the stocks on this list is that the trend is friendly to investors who are willing to take a long position. That is, over time, these stocks have consistently moved higher.
MarketBeat has a useful and free tool that lists stocks with a particularly low beta value. You can sort by variables such as market cap, sector, or analyst sentiment to focus on the stocks that interest you most.
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