Dollar General Stock Has Ruled the Pandemic

DG released plans to open more than 1,000 new locations in 2021

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Discount retailer Dollar General Corporation (NYSE:DG), in the company’s most recent quarterly report earlier this month, announced plans for major real estate growth in 2021. The company stated that it plans to execute approximately 2,900 real estate projects, including opening more than 1,000 new stores, remodeling 1,750 existing stores, and relocating 100 existing stores.

DG is up 35% in 2020, but the $225 level has proved elusive since scoring a $225.25 record high back on Nov. 9. And while the shares have taken a breather since then, their 80-day moving average has stepped up as support.

DG Stock Chart

Regardless your outlook on the retail chain, options are looking attractively priced. This is per the blue chip’s Schaeffer's Volatility Index (SVI) of 23%, which sits in the 10th percentile of all other annual readings. In other words, options traders are pricing in relatively low volatility expectations at the moment -- a boon for premium buyers.

Dollar General stock has a forward dividend of $1.44 and a forward dividend yield of 0.68%. The company last paid a dividend to investors of $0.36, and paid dividends since 2015.

Dollar General has shown incredible growth in recent years. The company was growing at a steady rate prior to 2020, but saw a massive surge in both revenue and net income over the past year. Dollar General has added more than $10 billion in revenue since 2017. In addition, the company has added nearly $1 billion in net profits over the past year, bringing Dollar General's total net income up to $2.54 billion in just the past 12 months.

From a fundamental perspective, the only visible issue for investing in Dollar General stock is the $13.46 billion in debt the company has.

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