Is Dollar General's Dividend Safe?
Dollar General (NYSE: DG) stock has fallen sharply this year as the company reported underwhelming earnings numbers. Profits are down, and the discount retailer expects continued headwinds as economic conditions weigh on its consumers.
Shares of Dollar General are now down more than 58% year to date. And because of the sharp decline, the stock's dividend yield has climbed to 2.2%, an abnormally high level for the company. Is the dividend still safe?
A good starting point to evaluate a dividend is the company's bottom line. If its per-share profits are light, then it may be difficult for a business to justify paying anything out to shareholders. That's especially true for a growing business such as Dollar General, which is normally busy upgrading and opening more locations.
Source Fool.com
