While markets are showing some signs of recovery in 2023, the economy isn't out of the woods yet. Interest rates and inflation remain high. And some Federal Reserve staff members expect a mild recession to occur later this year as economic challenges in banking and other sectors broadly weigh down consumer and business confidence. Let's discuss why Dollar General (NYSE: DG) and Phillip Morris International (NYSE: PM) look uniquely well-suited to this uncertain economic environment and could richly reward their long-term investors.
With more than 19,000 locations, Dollar General is America's largest dollar store chain, having grown tremendously since its founding in 1939. And while the brick-and-mortar retail industry is relatively mature, investors will love its super-safe business model and affordable valuation.
Dollar General can undercut the prices of big box retailers like Walmart and through several strategies, including less elaborate stores, less staff, and placing its locations in areas with lower real estate costs. These savings are passed on to consumers, helping its stores attract customers when money is tight.
Source Fool.com