Dollar General Co. (NYSE:DG) Raises Dividend to $0.59 Per Share

Dollar General Co. (NYSE:DG – Get Rating) declared a quarterly dividend on Thursday, March 16th, Zacks reports. Shareholders of record on Tuesday, April 11th will be paid a dividend of 0.59 per share on Tuesday, April 25th. This represents a $2.36 annualized dividend and a yield of 1.12%. The ex-dividend date of this dividend is Monday, April 10th. This is an increase from Dollar General’s previous quarterly dividend of $0.55.

Dollar General has increased its dividend payment by an average of 19.8% annually over the last three years and has raised its dividend every year for the last 6 years. Dollar General has a payout ratio of 17.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Dollar General to earn $11.27 per share next year, which means the company should continue to be able to cover its $2.20 annual dividend with an expected future payout ratio of 19.5%.

Dollar General Price Performance

Shares of NYSE:DG opened at $210.05 on Friday. Dollar General has a twelve month low of $183.25 and a twelve month high of $262.20. The stock’s 50 day moving average is $227.20 and its 200-day moving average is $239.37. The company has a quick ratio of 0.13, a current ratio of 1.23 and a debt-to-equity ratio of 0.98. The firm has a market capitalization of $46.96 billion, a price-to-earnings ratio of 20.61, a PEG ratio of 1.74 and a beta of 0.34.

Dollar General (NYSE:DG – Get Rating) last released its quarterly earnings data on Thursday, March 16th. The company reported $2.96 earnings per share for the quarter, topping the consensus estimate of $2.94 by $0.02. The firm had revenue of $10.20 billion for the quarter, compared to the consensus estimate of $10.24 billion. Dollar General had a net margin of 6.49% and a return on equity of 38.43%. The business’s revenue was up 17.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.57 earnings per share. Sell-side analysts forecast that Dollar General will post 10.66 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have issued reports on DG. JPMorgan Chase & Co. reiterated a “focus list” rating and set a $242.00 price target (down previously from $289.00) on shares of Dollar General in a research note on Thursday, January 19th. Wells Fargo & Company cut their target price on Dollar General from $275.00 to $245.00 in a research report on Friday. Evercore ISI lowered their price target on Dollar General to $265.00 in a research report on Friday, December 2nd. Morgan Stanley reduced their target price on shares of Dollar General from $255.00 to $235.00 and set an “overweight” rating for the company in a research note on Friday, February 24th. Finally, Credit Suisse Group started coverage on shares of Dollar General in a research report on Monday, December 19th. They set a “neutral” rating and a $260.00 price target on the stock. Seven investment analysts have rated the stock with a hold rating, eight have issued a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $251.88.

Insider Activity at Dollar General

In related news, Director Warren F. Bryant sold 1,951 shares of the company’s stock in a transaction that occurred on Wednesday, January 4th. The shares were sold at an average price of $243.93, for a total transaction of $475,907.43. Following the sale, the director now directly owns 38,269 shares in the company, valued at approximately $9,334,957.17. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 0.73% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Dollar General

A number of large investors have recently modified their holdings of DG. Truist Financial Corp boosted its stake in Dollar General by 1.7% during the fourth quarter. Truist Financial Corp now owns 141,037 shares of the company’s stock valued at $34,730,000 after buying an additional 2,323 shares during the period. Ascent Group LLC grew its holdings in shares of Dollar General by 8.3% during the fourth quarter. Ascent Group LLC now owns 3,704 shares of the company’s stock worth $912,000 after purchasing an additional 284 shares in the last quarter. State of Wyoming grew its holdings in shares of Dollar General by 59.1% during the fourth quarter. State of Wyoming now owns 1,448 shares of the company’s stock worth $357,000 after purchasing an additional 538 shares in the last quarter. Harbour Investments Inc. increased its position in shares of Dollar General by 10.4% in the fourth quarter. Harbour Investments Inc. now owns 1,194 shares of the company’s stock worth $294,000 after purchasing an additional 112 shares during the last quarter. Finally, Steward Partners Investment Advisory LLC raised its stake in Dollar General by 21.1% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 18,480 shares of the company’s stock valued at $4,551,000 after purchasing an additional 3,215 shares in the last quarter. 90.73% of the stock is currently owned by institutional investors.

Dollar General Company Profile

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Dollar General Corp. engages in the operation of merchandise stores. Its offerings include food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares, and seasonal items. It sells brands including Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo The company was founded by J.