#6 - Dollar General (NYSE:DG)
Dollar General (NYSE:DG) is to the budget-minded consumer what Costco is to the higher earners. It’s a store of value. The idea of a dollar store is a bit misleading because Dollar General is having success moving into some “reach up” price points.
Dollar General has grown fast. It now has a nationwide footprint of over 16,000 stores. It was hiring throughout the pandemic. Investors have been pushing the stock to all-time highs. At the same time, Dollar General has continued to beat forecasts for earnings and revenue.
On May 28, the company reported earnings per share (EPS) of $2.52 that blew away analysts’ expectations for $1.68 EPS. The company also generated higher-than-expected revenue of $8.45 billion. And in the all-important comparable-store sales, Dollar General posted a year-over-year increase of over 21%.
The company’s expansion and elevated stock price is reflected in its dividend yield that now sits below 1%. However, Dollar General has posted four consecutive years of dividend growth. And since it only pays out just above 20% of its trailing 12-month earnings to cover its dividend, the dividend is very safe.
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
- $74.93
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 13 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $104.00 (38.8% Upside)
