Dollar stores carry a range of cheap household products and random merchandise that fit even the tightest family budgets. While inflation has pressured the “everything costs $1 or less” niche, the concept of everyday staples at bargain prices endures nonetheless.
Let's explore the three big dollar store stocks so you can decide if one may fit nicely within your investment portfolio.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Dollar General (NYSE:DG) | $31.6 billion | 2.06% | Food and Staples Retailing |
1. Dollar General
NYSE: DG
Key Data Points
Dollar General (DG -0.37%) is the largest dollar store operator by annual sales and total store count.
The company also has the longest history of its competitors. Dollar General opened its first store in 1955, after founder Cal Turner was inspired by department store "dollar days" promotions. Thirteen years later, Dollar General went public on the New York Stock Exchange for $16.50 per share. Today, the company operates more than 20,000 stores around the U.S.
Financial performance
Dollar General has a long track record of revenue growth. In 2015, the company produced sales of about $18 billion. By fiscal year 2024, net sales had risen to $40.6 billion. The growth has come primarily from its expanding store footprint. During the same time, the chain added roughly 8,000 stores.
Between fiscal years 2014 and 2022, Dollar General held its operating margin between 8% and 11% -- solid performance for a retailer. More recent periods have been challenging. In fiscal year 2025, Dollar General's operating profit margin has fallen to 4.2%. Diluted earnings per share (EPS) also dipped from $7.55 in 2024 to $5.11, less than half its 2021 figure.
Dollar General's challenges include budget-constrained customers who are feeling the impact of inflation, inventory management issues, and weather events that have increased selling, general, and administrative (SG&A) expenses.
Stock price performance
Investors have not responded well to Dollar General's declining profitability. Between early 2023 and mid-2025, the stock price fell from more than $250 to about $115.
2. Dollar Tree
3. Five Below
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What to consider when investing in dollar store stocks
A lot of dollar store goods may be disposable and inexpensive, but that doesn't mean your investment should be the same. When investing in dollar store stocks, here are five things to think about:
Financial health. Look at variables like gross profit margins, operating margins, and net profit margins to see how efficiently the company is using its revenue. Make sure it's not overly leveraged with debt. Review any plans for share buybacks and dividends.
Competitive landscape. Not all dollar stores are created equal in the same areas. See if stores are concentrated in any one particular state or region, and compare it to potential competitors.
Economic factors. Dollar stores generally perform best during economic downturns. They can make money in good times, of course, but a buy-and-hold investor shouldn't assume that high profits posted during a recession will continue through good times.
Company factors. Is the company expanding, or is it closing stores, and why? Another key retail metric to consider is same-store sales. Review the company's annual report and keep tabs on top officers to make sure there's not excessive turnover in the C-suite.
Investment strategy. Make sure your investment aligns with your own personal goals and risk tolerance. As always, make sure you're buying a stock that will help you build wealth over the long term.
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