Dollar General Corp (NYSE:DG) is a discount retailer that offers everything from packaged foods to toys to apparel. The company stocks its shelves with other manufacturers’ brands but it also sells its own discount brands and products.
Over the past five years, the stock has risen by 64% but DG shares have struggled over the past year with the stock well away from its 52-week high of $261.59. For the year, Dollar General stock is down around 33%, so what does the future hold? Where will Dollar General stock be in 5 years?
Discount retailers have historically been popular when times are tough, and recession fears are a big reason why DG share price increased in recent years. But this downturn has been more severe than some expected, with consumers cutting spending down to the bone. This marked shift in consumer shopping trends has started to affect Dollar General’s bottom line.
But the company still increased net sales in the first quarter of 2023. And Dollar General recently raised its dividend to a 1.44% annual dividend yield. Both of these are signs of strength in the face of unprecedented economic challenges and bode well for where Dollar General stock will be in 5 years.
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