DG - Dollar General Double Play: Owning The Shelves And The Bricks
2024-05-28 03:04:11 ET
Summary
- Dollar General serves underserved communities with low-cost goods, making it valuable during inflationary times.
- The company's rural focus allows for cost savings and rapid expansion, making it a critical part of the U.S. retail landscape.
- Combining Dollar General with its top landlords, like Realty Income and Agree Realty, can create an interesting investment combo with high returns and reduced volatility.
Introduction
I recently wrote an article titled "The Tractor Supply Company + Real Estate Combo: A Recipe For Superior Returns."
In that article, I did two things:
- I explained what makes the Tractor Supply Company ( TSCO ) just a fascinating consumer dividend growth stock.
- Because the company has a strategy of selling real estate to fund growth (sale-leaseback deals), I showed a model portfolio consisting of TSCO and one of its landlords, which turned out to deliver elevated income, consistent dividend growth, and a highly favorable risk/reward profile.
Based on this, I thought about Dollar General ( DG ) .
My most recent article covering this dollar store was written on January 9, titled " The Bull Case For Dollar General To Return >9% Per Year. "...
Dollar General Double Play: Owning The Shelves And The Bricks