Fintel reports that on June 2, 2023, Goldman Sachs maintained coverage of Dollar General (NYSE:DG) with a Buy recommendation.
Analyst Price Forecast Suggests 50.88% Upside
As of June 1, 2023, the average one-year price target for Dollar General is 244.21. The forecasts range from a low of 188.87 to a high of $299.25. The average price target represents an increase of 50.88% from its latest reported closing price of 161.86.
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The projected annual revenue for Dollar General is 41,373MM, an increase of 9.32%. The projected annual non-GAAP EPS is 12.74.
Dollar General Declares $0.59 Dividend
On March 16, 2023 the company declared a regular quarterly dividend of $0.59 per share ($2.36 annualized). Shareholders of record as of April 11, 2023 received the payment on April 25, 2023. Previously, the company paid $0.55 per share.
At the current share price of $161.86 / share, the stock’s dividend yield is 1.46%.
Looking back five years and taking a sample every week, the average dividend yield has been 0.89%, the lowest has been 0.65%, and the highest has been 1.27%. The standard deviation of yields is 0.14 (n=237).
The current dividend yield is 4.00 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.21. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.64%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2155 funds or institutions reporting positions in Dollar General. This is a decrease of 13 owner(s) or 0.60% in the last quarter. Average portfolio weight of all funds dedicated to DG is 0.43%, a decrease of 10.26%. Total shares owned by institutions decreased in the last three months by 3.25% to 230,988K shares. The put/call ratio of DG is 1.14, indicating a bearish outlook.
What are Other Shareholders Doing?
Price T Rowe Associates holds 11,293K shares representing 5.15% ownership of the company. In it’s prior filing, the firm reported owning 13,742K shares, representing a decrease of 21.68%. The firm decreased its portfolio allocation in DG by 34.64% over the last quarter.
Capital International Investors holds 9,161K shares representing 4.18% ownership of the company. In it’s prior filing, the firm reported owning 9,347K shares, representing a decrease of 2.03%. The firm decreased its portfolio allocation in DG by 19.74% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 6,921K shares representing 3.16% ownership of the company. In it’s prior filing, the firm reported owning 6,856K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in DG by 20.33% over the last quarter.
VFINX – Vanguard 500 Index Fund Investor Shares holds 5,217K shares representing 2.38% ownership of the company. In it’s prior filing, the firm reported owning 5,215K shares, representing an increase of 0.05%. The firm decreased its portfolio allocation in DG by 20.70% over the last quarter.
Capital World Investors holds 4,808K shares representing 2.19% ownership of the company. In it’s prior filing, the firm reported owning 6,626K shares, representing a decrease of 37.80%. The firm decreased its portfolio allocation in DG by 39.86% over the last quarter.
Dollar General Background Information
(This description is provided by the company.)
Dollar General Corporation has been delivering value to shoppers for more than 80 years. Dollar General helps shoppers Save time. Save money. Every day.® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and seasonal items at everyday low prices in convenient neighborhood locations. Dollar General operated 16,979 stores in 46 states as of October 30, 2020. In addition to high-quality private brands, Dollar General sells products from America’s most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo.
Key filings for this company:
This article originally appeared on Fintel
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