Should You Buy This Recession-Proof Dividend Stock?
The consumer price index rose 8.3% year over year in August, levels the country hasn't seen in four decades until now. The average American household is spending several thousand more dollars each year, forcing many consumers to modify their spending habits.
Dollar General (NYSE: DG) could end up benefitting from the swift change in consumer spending habits. It could also benefit from its status as a value stock, which investors tend to flock to during economic turmoil. But is the stock a buy for those seeking a stable investment? Let's check out the dollar store company's operating results and valuation to try to get an answer.
With a $54 billion market capitalization and more than 18,000 stores in 47 U.S. states, Dollar General is the largest retailer in the U.S. by store count. This large store count uniquely positioned the company to benefit from a shift in consumer spending last quarter toward more discount merchandise. Dollar General reported $9.4 billion in net sales during the quarter, which was up 9% over the year-ago period.
Source Fool.com
