NYSE:DG

Dollar General Corp. (DG)

109.96
+0.58 (0.53%)
as of Jun 10, 2026, 8:00:00 pm Market Open.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly This discount retailer released strong earnings and continues to expand its business. In its earnings report released today EPS of $3.12 beat expectations of $2.47 and were up 92% from the previous year. Same store sales are up 15%. Management plans to complete a $2.5 billion share buyback by end-January. It pays a small dividend, but with a payout ratio of only 17% it is safe. We would trade this with a stop-loss of $189. Yield 0.71%
PAST TOP PICK
(A Top Pick May 22/19, Up 53%) DG has great locations away from big competitors in rural areas. About 75% of Americans live within 5 miles of their stores. Low beta at 0.7x vs. the S&P. Highly defensive. 80% of the goods they sell are consumables. It's a very defensive name.
BUY

DOL vs Dollar Tree vs. Dollar General He likes Dollar General for its location and execution. Doesn't like Dollar Tree because their locations are in urban centres where there's too much competition. He prefers Dollarama over Dollar General, but likes DOL, but many DOL stores are inside malls, which is a problem now (malls are closed). He prefers DOL to Dollar Tree because they execute better; and Dollar General over Dollar Tree.

PAST TOP PICK
(A Top Pick Feb 28/19, Up 34%) The more defensive part of a barbell strategy. Resilient, reliable earnings. People still need it in times of uncertainty and viruses. 22x earnings, 11% growth rate. 80% of revenue comes from consumables. It's important to have some of these names in your portfolio.
BUY

DG vs. BRK.B Both somewhat defensive, but DG more so. S&P has outperformed BRK.B, mainly because it has a bit more torque. In the near term, BRK.B has more beta, so it will outperform if there's a market bounce. Be barbelled, and still hold a defensive name. Over the next 12-24 months, still likes DG.

PAST TOP PICK
(A Top Pick Jan 23/19, Up 39%) Recession resilient. Defensive, with good consistent earnings. In rural areas. 80% of sales from consumable products. Will perform well in a slowdown.
HOLD

DG vs. DLTR DLTR is in urban areas, with lots of competitors. Dollar General is in low population areas. A bit cheaper than Dollar General, but you have to look at the growth rate. Growth rate is in mid-single digits, but Dollar General is in low double digits. If you look at the PEG ratio, Dollar General is still cheaper.

BUY
Decent growth rate of 11-12%. Resilient stock in case of a recession. Very smart rural locations, away from competitors. Strong technical chart.
BUY
Great chart. Technicals are good. Higher highs and higher lows. Recession resilient. 23x earnings, low beta, 11% growth rate. Low volatility. Likes that they're mostly in rural locations. 75% of Americans live within 5 miles of a Dollar General.
BUY

He used to own it. He sold it too early but did well with it. He likes this space, especially in the U.S. They are below Walmart's price point, US employment is full and US consumers have money. Doing much better than Dollar Tree.

DON'T BUY
Has never been more highly valued. 5x price to book. FMV about 15% lower than it is right now. Nice momentum, but the values aren't there. History suggests to beware at this point. Be very careful. Don't buy right now.
TOP PICK
This is the largest discount retailer in the US. Over 75% of their revenues are from recurring items. This allows for steady earnings. When there is an economic slowdown, this space usually does well. It has an 11% growth rate. This is a defensive name to own going forward. Yield = 1.05% (Analysts’ price target is $125.48)
COMMENT
Dollar General vs. Dollarama The dollar stores are a good ivnestment when the economy stores. American dollar stores are priced at a discount to Canadian ones. December's pullback was a good opportunity to buy, and she would be on a future pullback. Dollarama's same-stores growth has slowed and has always traded at a premium to Canadian ones. Also, their valuation has contracted, but still higher than American ones. Also, the Canadian consumer has slowed spending overall.
TOP PICK
$24 billion in revenues. Largest discount retailer in the US with 15,000 stores in 44 States. Over 75% of sales come from recurring sales of consumables (paper, perishable foods, etc). Late cycle this is a defensive name. Often in rural locations far form the WalMarts and other competitors. Trading at 18 times forward earnings. 21% ROE. (Analysts’ price target is $118.23)
TOP PICK
Defensive and low-beta. 15,000 stores in the US, the biggest discount retailer there. Located in rural areas and small town, off the radar of the retail giants, which is a plus. 15% growth rate. 5-year ROE is 20%. 1% dividend, growing 10% annually over the past three years. Should perform well in a general downturn. They're still expanding. (Analysts’ price target is $117.11)
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