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.
Top dollar store stocks in 2025
Top dollar store stocks in 2025
Industry consolidation has trimmed the dollar store space down to three main competitors: Dollar General (DG -3.54%), Dollar Tree (DLTR -4.26%), and Five Below (FIVE 0.44%). The table shows market capitalizations and descriptions for each of them.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Dollar General (NYSE:DG) | $22 billion | 2.37% | Food and Staples Retailing |
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Dollar Tree (NASDAQ:DLTR) | $18 billion | 0.00% | Food and Staples Retailing |
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Five Below (NASDAQ:FIVE) | $9 billion | 0.00% | Specialty Retail |
1. Dollar General
1. Dollar General
Dollar General (DG -3.54%) 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
2. Dollar Tree
Dollar Tree (DLTR -4.26%) is Dollar General's closest competitor by store footprint and annual sales. Dollar Tree acquired Family Dollar in 2015 and 170 stores from the 99 Cents Only chain in 2024. Today, Dollar Tree operates more than 16,000 stores in the United States and Canada and generated about $17.5 billion in revenue during its most recent fiscal year.
Financial performance
Like Dollar General, Dollar Tree has produced good sales growth over the long term. From a margin perspective, Dollar Tree has underperformed its competitor slightly. Between 2016 and early 2023, the company's operating margin ranged from 6.7% to 13.6%. Since then, Dollar Tree's margins and profitability have declined.
Earnings per share fell to -$4.54 in 2024 and plunged to -$17.17 during the first quarter of 2025 before rebounding to $1.61 in the second quarter.
Dollar Tree also cites budget-constrained customers as a primary driver of lower profits. The company is addressing this in part by increasing its selection of high-frequency items -- everyday essentials -- priced below $5.
Stock price performance
Dollar Tree stock has fared better than Dollar General's, but the trend line is going in the wrong direction. In May 2023, you could buy a share of Dollar Tree for about $160. By August 2025, the stock was trading for about $115.
3. Five Below
3. Five Below
Five Below (FIVE 0.44%) opened its first store in 2002, which makes it a relative newcomer in the retail industry. The company targets young shoppers with an assortment of toys, party supplies, and other household basics -- many priced below $5.
Five Below trails its peers in store footprint and sales. The company has about 1,850 stores in the U.S., and generates about $3.9 billion in annual revenue.
Financial performance
Five Below has largely been a growth story since its 2012 initial public offering. Between fiscal years 2015 and 2019, the company delivered 20%-plus annual sales growth. By fiscal year 2024, the rate had leveled off somewhat to about 15%.
Five Below has the best operating margins of the three dollar stores, delivering more than 10% on this metric in most years, although the figure had sagged to around 8% by mid-2025. Profitability has been a little lumpy in recent years, with EPS declines in fiscal years 2021 and 2023; in addition, earnings were on a path to decline again during the first half of 2025.
Five Below's margins declined slightly in fiscal years 2023 and 2024 and were on course for another decline in 2025, but not to the extent of its two competitors.
Also, while Dollar General and Dollar Tree have similar, value-oriented forward P/E ratios, Five Below trades at a higher price point relative to earnings. No doubt investors appreciate the store's relative margin performance and consistency.
Stock price performance
Five Below stock has also seen better days. In early 2023, the stock traded for more than $200; by mid-2025, it had fallen to around $135.
Contributing to the decline was a cut to the sales outlook in mid-2024 and the departure of the company's CEO and president.
Competition
Dollar store competition
Dollar General, Dollar Tree, and Five Below compete most directly with each other, but there is fierce indirect competition in the broader shopping space. Big box stores like Walmart (WMT -1.05%), club stores Costco (COST -0.89%) and Sam's Club, and closeout retailers such as Big Lots all cater to value-oriented consumers.
Related investing topics
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.
