DG
📉 Despite a growing dividend, Dollar General’s stock price plummeted 66% over the last year and a half, illustrating that dividend growth alone doesn’t guarantee investment success.
⚔️ Increased competition forced the company to reduce costs, while simultaneously facing rising operational costs, significantly squeezing profit margins.
⚠️ This case serves as a crucial warning: relying solely on dividend metrics without analyzing underlying business fundamentals like competition and cost structure can lead to substantial losses.
@ElClubDeInversion:
“Here you have an example on screen now to see exactly what I mean. This is a company that distributes a growing dividend, in this case, which I already told you is what we look for, but it’s not the only thing we look for. Why? Because this company, despite the growing dividend, has lost 66% in the last year and a half. And you’ll ask, what are the reasons? Well, on one hand, because competition has increased, which forces this company to reduce its costs, and on the other hand, there has been an increase in its costs, which has significantly reduced its profits. If you want to see which company it is, Dollar General Corporation.”
Watch the exact part of the video where @ElClubDeInversion talks about Dollar General here:
Watch the video on YouTube
Read more articles analyzing Dollar General (DG) at the provided link. DG stock.
