Oppenheimer recently upgraded Dollar General from “Perform” to “Outperform” with a price target of $130, a significant vote of confidence in the retailer’s comeback potential. The move comes on the heels of a stronger-than-expected fiscal Q1 performance. Dollar General reported earnings per share of $1.78, outpacing the consensus estimate of $1.46. Revenue also impressed at $10.44 billion, beating forecasts of $10.25 billion.
📈 The upgrade is a nod to Dollar General’s resilience in a tough retail environment. Oppenheimer emphasized its status as a top defensive pick alongside names like Costco and Walmart. The company’s renewed focus on operational efficiency, inventory management, and store-level execution is helping drive margin recovery.
🛒 Dollar General’s strategic appeal also lies in its core value offering, which remains compelling for cost-conscious consumers amid sticky inflation. The consistent customer base and increasing basket size are signaling that Dollar General is well-positioned to benefit from ongoing economic uncertainty.
💰 On the dividend front, Dollar General currently pays a quarterly dividend of $0.59 per share, which amounts to $2.36 annually. This translates to a dividend yield of roughly 2.12%. The payout ratio of 45% strikes a healthy balance between returning capital to shareholders and funding growth initiatives. Over the last decade, Dollar General has steadily maintained and increased its dividend, reinforcing its reliability as a long-term income play.