Jim Cramer Describes Dollar General as an "Exceptionally Managed" Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 21 2025
0mins
Should l Buy DG?
Source: Yahoo Finance
Dollar General's Market Position: Dollar General Corporation is recognized for its strong performance in the consumer staples sector, with a significant year-to-date stock increase of over 50%, despite facing challenges such as rising competition and inflation.
CEO's Insights on Tariffs: CEO Todd Vasos noted that while Dollar General has reduced its Chinese exposure in imports, the company has still had to raise prices due to tariffs affecting their operations.
Operational Improvements: The company is addressing execution issues related to store standards, supply chain, and labor efficiency, which are expected to enhance its performance as inflation stabilizes.
Countercyclical Business Model: Dollar General typically benefits during economic downturns as it attracts middle-income consumers looking for affordable options, positioning it as a potential investment opportunity amid economic uncertainties.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DG
Wall Street analysts forecast DG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DG is 143.86 USD with a low forecast of 125.00 USD and a high forecast of 170.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
9 Buy
7 Hold
0 Sell
Moderate Buy
Current: 146.650
Low
125.00
Averages
143.86
High
170.00
Current: 146.650
Low
125.00
Averages
143.86
High
170.00
About DG
Dollar General Corporation is a discount retailer. The Company offers merchandise, including consumable items, seasonal items, home products and apparel. Its merchandise includes brands from manufacturers, as well as its own private brand selections with prices at discounts to brands. Its consumables category includes paper and cleaning products, packaged food, perishables, snacks, health and beauty, pet, and tobacco products. Its seasonal products include holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies. Its home products include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, bed and bath soft goods. The Company’s apparel products include basic items for infants, toddlers, girls, boys, women and men, as well as socks, underwear, disposable diapers, shoes and accessories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of the Best Stocks in the Market
- Software Sector Turmoil: The release of a new AI tool by Anthropic has led to a nearly 30% collapse in the software sector in 2025, despite the S&P 500 nearing record highs, creating uncertainty that has driven investors to sell off software stocks en masse.
- Strong Consumer Staples Performance: As of February 9, the consumer staples sector has performed exceptionally well, rising 12.7% year-to-date, which would mark its best return since 2021 if sustained, indicating a significant capital shift from software to staples.
- Investor Flight to Safety: In light of market uncertainties, investors are gravitating towards low-risk consumer staple stocks such as food and beverages, reflecting a search for safer investment options, even as the earnings outlook for these stocks has not significantly improved.
- HALO Stocks Concept: The HALO stocks, characterized by heavy assets and low obsolescence risk, are expected to benefit from advancements in AI, positioning them as a key investment theme for 2026, as highlighted by Josh.
See More
Realty Income Increases Dividend for 112 Consecutive Quarters
- Stable Dividend Growth: Realty Income has increased its dividend for 112 consecutive quarters, demonstrating its ability to deliver stable growth across various macroeconomic environments, which is likely to continue attracting income-seeking investors.
- Strong Market Prospects: The company has a total addressable market of $8.5 trillion in Europe, indicating significant expansion potential, particularly with its investments in private capital that will further enhance its competitive position.
- UPS Cash Flow Assurance: United Parcel Service (UPS) expects to generate $6.5 billion in free cash flow in 2023, sufficient to cover $5.4 billion in dividends while also spending $3 billion on capital expenditures, showcasing its financial health and ability to maintain dividends.
- Verizon's Financial Improvement: Verizon Communications projects a 7% year-over-year increase in free cash flow to $21.5 billion in 2026, and with 19 consecutive years of dividend increases, it indicates strong growth potential following the acquisition of Frontier Communications.
See More
Analysis of High-Yield Stock Investment Strategies
- REIT Stability: Realty Income, the world's sixth-largest REIT, owns over 15,500 properties with top tenants like Dollar General and FedEx, boasting a forward dividend yield of 5.1%, and its impressive track record of 30 consecutive years of dividend increases underscores its stability and growth potential.
- Delivery Giant Resilience: United Parcel Service has never cut its dividend since going public in 1999, currently offering a 5.6% dividend yield, with projected free cash flow of $6.5 billion in 2023, sufficient to cover $5.4 billion in dividends, highlighting its strong financial health and growth prospects.
- Telecom Growth Potential: Verizon Communications offers a 6.1% dividend yield and has increased its dividend for 19 consecutive years, with free cash flow expected to rise to $21.5 billion in 2026, indicating robust growth following its acquisition of Frontier Communications, which strengthens its market position.
- Market Volatility and Investment Strategy: Despite increasing market volatility and concerns over a potential AI stock bubble, high-yield stocks like Realty Income, UPS, and Verizon present attractive options for investors, particularly in uncertain economic conditions due to their stability and growth potential.
See More
UBS Increases Target Price for Dollar General Corp to $168, Up from $143
- Company Announcement: Dollar General Corp has raised its target price significantly.
- New Target Price: The new target price is set at $168, up from the previous $143.
See More
Bottom 10 Large-Cap Stocks with Lowest Dividend Growth Grades
- Dividend Growth Rating Overview: According to Seeking Alpha's scoring system, companies like Albemarle, Amkor Technology, Baxter International, Pfizer, and Paramount Skydance received an F grade for dividend growth, indicating a lack of commitment to increasing shareholder returns, which may lead to decreased investor confidence.
- Industry Distribution: These low-rated stocks span various sectors, including specialty chemicals, pharmaceuticals, healthcare equipment, broadcasting, and REITs, reflecting a general weakness in dividend growth capabilities among many large companies under varying market conditions.
- Impact Analysis: All listed stocks are categorized as 'Sell', suggesting that investors should exercise caution when considering investments in these companies, particularly given their poor performance in dividend growth, which could adversely affect their long-term stock performance.
- Rating Standard Interpretation: Seeking Alpha's dividend growth ratings use a scale from A+ to F, with grades of B- or above considered a Buy, while D+ or below is deemed a Sell, highlighting a significant deficiency in these companies' commitment to shareholder returns, potentially impacting their attractiveness.
See More
Dividend Growth Potential in Consumer Stocks
- Stability of REITs: Realty Income owns over 15,500 single-tenant commercial properties, with clients like Home Depot and Dollar General, and a 99% occupancy rate ensures steady cash flows, with expectations for profit and stock price increases as interest rates decline.
- Transformation Plans at Target: Target, with nearly 2,000 stores, faces inventory challenges and market pressures, yet its 54-year history of dividend growth and a $5 billion investment plan under the new CEO could help revitalize performance and attract investor interest.
- Challenges in Cleaning Products Market: Clorox, known for brands like Kingsford and Hidden Valley Ranch, has seen stock price declines due to reduced post-pandemic demand and a cyberattack, but its 4.4% dividend yield and improving business efficiencies may position it as a future growth stock.
- Attractive Dividend Yields: All three companies demonstrate strong dividend growth potential, with Realty Income's 5.3% yield, Target's 4.3%, and Clorox's 4.4%, all exceeding market averages, appealing to investors seeking stable income.
See More
Analysis of the Best Stocks in the Market
- Software Sector Turmoil: The release of a new AI tool by Anthropic has led to a nearly 30% collapse in the software sector in 2025, despite the S&P 500 nearing record highs, creating uncertainty that has driven investors to sell off software stocks en masse.
- Strong Consumer Staples Performance: As of February 9, the consumer staples sector has performed exceptionally well, rising 12.7% year-to-date, which would mark its best return since 2021 if sustained, indicating a significant capital shift from software to staples.
- Investor Flight to Safety: In light of market uncertainties, investors are gravitating towards low-risk consumer staple stocks such as food and beverages, reflecting a search for safer investment options, even as the earnings outlook for these stocks has not significantly improved.
- HALO Stocks Concept: The HALO stocks, characterized by heavy assets and low obsolescence risk, are expected to benefit from advancements in AI, positioning them as a key investment theme for 2026, as highlighted by Josh.
See More
Realty Income Increases Dividend for 112 Consecutive Quarters
- Stable Dividend Growth: Realty Income has increased its dividend for 112 consecutive quarters, demonstrating its ability to deliver stable growth across various macroeconomic environments, which is likely to continue attracting income-seeking investors.
- Strong Market Prospects: The company has a total addressable market of $8.5 trillion in Europe, indicating significant expansion potential, particularly with its investments in private capital that will further enhance its competitive position.
- UPS Cash Flow Assurance: United Parcel Service (UPS) expects to generate $6.5 billion in free cash flow in 2023, sufficient to cover $5.4 billion in dividends while also spending $3 billion on capital expenditures, showcasing its financial health and ability to maintain dividends.
- Verizon's Financial Improvement: Verizon Communications projects a 7% year-over-year increase in free cash flow to $21.5 billion in 2026, and with 19 consecutive years of dividend increases, it indicates strong growth potential following the acquisition of Frontier Communications.
See More
Analysis of High-Yield Stock Investment Strategies
- REIT Stability: Realty Income, the world's sixth-largest REIT, owns over 15,500 properties with top tenants like Dollar General and FedEx, boasting a forward dividend yield of 5.1%, and its impressive track record of 30 consecutive years of dividend increases underscores its stability and growth potential.
- Delivery Giant Resilience: United Parcel Service has never cut its dividend since going public in 1999, currently offering a 5.6% dividend yield, with projected free cash flow of $6.5 billion in 2023, sufficient to cover $5.4 billion in dividends, highlighting its strong financial health and growth prospects.
- Telecom Growth Potential: Verizon Communications offers a 6.1% dividend yield and has increased its dividend for 19 consecutive years, with free cash flow expected to rise to $21.5 billion in 2026, indicating robust growth following its acquisition of Frontier Communications, which strengthens its market position.
- Market Volatility and Investment Strategy: Despite increasing market volatility and concerns over a potential AI stock bubble, high-yield stocks like Realty Income, UPS, and Verizon present attractive options for investors, particularly in uncertain economic conditions due to their stability and growth potential.
See More
UBS Increases Target Price for Dollar General Corp to $168, Up from $143
- Company Announcement: Dollar General Corp has raised its target price significantly.
- New Target Price: The new target price is set at $168, up from the previous $143.
See More
Bottom 10 Large-Cap Stocks with Lowest Dividend Growth Grades
- Dividend Growth Rating Overview: According to Seeking Alpha's scoring system, companies like Albemarle, Amkor Technology, Baxter International, Pfizer, and Paramount Skydance received an F grade for dividend growth, indicating a lack of commitment to increasing shareholder returns, which may lead to decreased investor confidence.
- Industry Distribution: These low-rated stocks span various sectors, including specialty chemicals, pharmaceuticals, healthcare equipment, broadcasting, and REITs, reflecting a general weakness in dividend growth capabilities among many large companies under varying market conditions.
- Impact Analysis: All listed stocks are categorized as 'Sell', suggesting that investors should exercise caution when considering investments in these companies, particularly given their poor performance in dividend growth, which could adversely affect their long-term stock performance.
- Rating Standard Interpretation: Seeking Alpha's dividend growth ratings use a scale from A+ to F, with grades of B- or above considered a Buy, while D+ or below is deemed a Sell, highlighting a significant deficiency in these companies' commitment to shareholder returns, potentially impacting their attractiveness.
See More
Dividend Growth Potential in Consumer Stocks
- Stability of REITs: Realty Income owns over 15,500 single-tenant commercial properties, with clients like Home Depot and Dollar General, and a 99% occupancy rate ensures steady cash flows, with expectations for profit and stock price increases as interest rates decline.
- Transformation Plans at Target: Target, with nearly 2,000 stores, faces inventory challenges and market pressures, yet its 54-year history of dividend growth and a $5 billion investment plan under the new CEO could help revitalize performance and attract investor interest.
- Challenges in Cleaning Products Market: Clorox, known for brands like Kingsford and Hidden Valley Ranch, has seen stock price declines due to reduced post-pandemic demand and a cyberattack, but its 4.4% dividend yield and improving business efficiencies may position it as a future growth stock.
- Attractive Dividend Yields: All three companies demonstrate strong dividend growth potential, with Realty Income's 5.3% yield, Target's 4.3%, and Clorox's 4.4%, all exceeding market averages, appealing to investors seeking stable income.
See More
