11 Best Retail Dividend Stocks to Buy

8. Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 53

Dollar General Corporation (NYSE:DG) is an American chain of discount stores. The company faced some challenges in the past year, with the stock declining significantly by over 45% over the past 12 months. It faced headwinds from weaker consumer spending and inflation. In addition, competition from its competitors took a toll on the stock. However, analysts are presenting a positive outlook on the company as it continues to expand rapidly and has a solid turnaround plan. Moreover, the stock is currently cheap, trading at a forward P/E of 15.67.

To make up for its losses, Dollar General Corporation (NYSE:DG) announced the Back to Basics plan, which includes better inventory management and enhanced in-stock levels. The company is also experimenting with same-day delivery pilot and testing home delivery by using the DG app at 75 of its stores. Due to these strategies, the company’s recent quarterly earnings were encouraging. It reported a revenue of $10.3 billion in the fourth quarter of 2024, which showed a 4.5% growth from the same period last year. The revenue surpassed analysts’ estimates by $46.3 million. The company also reported a 1.2% growth in its same-store sales.

Dollar General Corporation (NYSE:DG) also posted a solid cash position, with its cash and cash equivalents growing to $932.5 million in 2024, from $537.2 million in 2023. The company also reported a 25.3% YoY growth in its operating cash flow at $3 billion. It currently offers a quarterly dividend of $0.59 per share and has a dividend yield of 2.74%, as of March 29.