Wal-Mart Stores, Inc. (WMT), Dollar General Corp. (DG) & Performing Well

Dollar Tree, Inc. (NASDAQ:DLTR) sells most of its items around the $1 price point and hence its expansion is a threat to Dollar General Corp. (NYSE:DG).

Wal-Mart Stores, Inc. (NYSE:WMT) has also been moving into the space of dollar stores. The retail giant already offers lower prices than Dollar General Corp. (NYSE:DG), and it has been increasing its presence in smaller neighborhoods.

With a beta of 0.33, Wal-Mart Stores, Inc. (NYSE:WMT) is a defensive stock that also pays a good dividend that yields 2.60%. The company has a payout ratio of just 34%, possesses strong operating cash flow, and can provide stability and protection to a portfolio.

Conclusion

Dollar General Corp. (NYSE:DG)’s performance has been great this year and the company’s sales growth is better than its peers. Its outlook indicates that it expects more growth in the future. This would be driven by Dollar General’s focus on serving lower income consumers and those who are looking to save money. The company has also been expanding its stores and is seeing more traffic. Investors looking for a retail play should consider Dollar General.

The article Why Dollar General’s Outstanding Performance Should Continue originally appeared on Fool.com.

Ayush Singh has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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