JHMC

Dollar General: A Model of Consistency

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Dollar General’s fiscal 2017 marked its 28th consecutive year of positive same-store sales growth, and we couldn’t be more impressed with the consistency of its operational performance in the past three decades, as well as its share price performance since its addition to the simulated Best Ideas Newsletter portfolio. By Kris Rosemann Dollar General’s (DG) fiscal 2017 fourth quarter report, released before the open March 15, was full of reasons for investors to get excited, and its share price reacted accordingly. The company has been a model of consistency for nearly three decades, and it continues to have a significant runway for growth while simultaneously generating an attractive and growing free cash flow stream. Same-store sales grew 3.3% in the … Read more

Shopping for Income Within Retail in a Digital World

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Image Source: Mike Mozart The 2017 holiday shopping season has shown that e-commerce has never been stronger and it will only continue to grow. But there is still potential for income generation among more traditional retailers. Investors must be tremendously discerning in this area, however, as margin, and ultimately free cash flow, pressures remain prevalent. We like Walmart, Target, Costco as income ideas in retail, but TJX Companies and Best Buy may be worth a look. We’re avoiding the department stores and teen retail like the plague, regardless of their Dividend Cushion ratios. By Kris Rosemann and Brian Nelson, CFA What an incredible time we’re living in. For those that study history, the US’ pressure on other countries like China … Read more