Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine. The company's consumable products also comprise snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, including over-the-counter medicines and personal care products, such as soaps, body washes, shampoos, cosmetics, and dental hygiene and foot care products; pet supplies and pet food; and tobacco products. In addition, it offers seasonal products comprising holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, and automotive and home office supplies; and home products that include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods. Further, the company provides apparel, which comprise basic items for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

Dollar General appears to be a mature retailer with sustainable profitability, but without a clear liquidity cushion and with a noticeable premium on a book-value basis. P/E of 16.48, P/S of 0.64, and P/FCF of 13.89 are below the industry median, which supports the case for moderate undervaluation in terms of earnings, revenue, and free cash flow. At the same time, P/B of 3.01 is significantly above the industry median, meaning the market is already pricing in high capital quality and leaving limited room for further rerating. Profitability is strong: ROE of 19.56, ROI of 12.70, and return on tangible equity of 54.88 are notably above the industry, and their trend over recent periods has generally improved. This is an important positive for the valuation, because the company is able to generate profits from its asset and capital base even with relatively low margins. On the other hand, ROA of 5.38, net profit margin of 3.90, and operating margin of 5.59 remain below the industry median, indicating pressure on operating efficiency and limiting the potential for multiple expansion. Gross margin of 30.83 looks relatively stable and has improved slightly over the years, which softens the negative impact of weaker operating margins. Leverage is generally manageable: debt/equity of 0.52 is around the median, and debt has declined in recent years, reducing financial risk. However, the quick ratio of 0.25 is very low, and the current ratio of 1.21 is only slightly above 1, so liquidity remains a weak point and calls for caution. Revenue, EBITDA, gross profit, and net income have all grown compared with earlier periods, confirming the business’s operational resilience. Dividend yield is currently absent, and historically it has been low and declining, so the dividend factor does not support the investment case. Overall, the fundamentals are rather favorable, but not strong enough to justify an aggressive increase in the target price: solid profitability and reasonable valuation on an earnings/FCF basis are offset by weak liquidity, low margins, and an expensive P/B. For an investor, this is a story of a high-quality but no longer cheap defensive retailer with moderate growth potential and limited rerating upside.

Dollar General Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Рынок не поддерживает быков.

Strong index, significantly down. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased and is at a high level.

DG looks high-quality and profitable, but weak liquidity and a high P/B ratio limit the upside; the assessment is rather moderately cautious.

Key Points
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Realty Income -- 5.5%
The real estate investment trust (REIT) Realty Income (NYSE: O) is regularly touted as one of the most reliable dividend stocks around. After all, the company calls itself "The Monthly Dividend Company."
Realty Income is a triple-net lease operator, meaning it purchases real estate with the intention of leasing it to businesses that pay for property taxes, insurance, and maintenance costs. In turn, tenants may be able to negotiate longer-term leases at better rates, while having more flexibility over the space they use for their businesses.
Realty Income focuses on leasing to non-discretionary, service-oriented businesses that can be more resilient throughout the business cycle, such as Dollar General and 7-Eleven. Realty Income also leases industrial properties and data centers.
Realty Income began paying a dividend in 1994 and has raised it every year since, at a compound annual growth rate of 4.1%. Not only is the dividend yield quite strong, but Realty Income's business appears robust enough to sustain this trend.
Through the first half of the year, Realty Income generated adjusted funds from operations (AFFO) per share of $2.22, a metric similar to free cash flow for REITs.
Realty Income paid dividends of roughly $1.63 per share in that period, or 73% of AFFO, leaving a nice buffer to continue raising the dividend for the foreseeable future.
AT&T -- 4.3%
The multinational telecommunications company AT&T (NYSE: T) is another strong dividend payer, with a trailing yield of 4.3%.
AT&T provides fiber-optic high-speed internet and fixed wireless, which is internet delivered via radio signals from a transmission tower, as well as mobile wireless phone and data services. AT&T's wireless network is the largest in North America, covering more than 300 million people.
Up until 2020, AT&T had increased its annual dividend for 36 straight years, according to Barrons. However, the company ended up cutting its dividend after it spun off its WarnerMedia assets in 2022.
Since then, AT&T has held its quarterly dividend unchanged at $0.2775 per share.
Although some dividend investors may want to see the dividend grow every year, the dividend at current levels does feel quite safe. Through the first half of the year, AT&T paid nearly $4 billion of dividends, while generating free cash flow of nearly $7.2 billion.
Additionally, AT&T continues to pay down debt and buy back stock, which also benefits the stock.
Chevron -- 3.3%
Last but not least is the large U.S. oil and gas producer Chevron (NYSE: CVX).
Chevron has raised its annual dividend every year since 2002, but it's been paying solid dividends since 1990, although it didn't always raise the dividend each year between then and 2002.
The dividend also looks to be in particularly good shape, as free cash flow has soared thanks to higher oil prices, cost efficiencies, and record production. Free cash flow of more than $16.5 billion through the first half of 2026 easily covers the roughly $7 billion in common dividends paid in that time frame.
Free cash flow through the first half of 2025 was only about $6.1 billion, although it still covered dividends at the time.
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Walmart Inc. WMT shares have lost 14.3% over the past six months, reflecting a notable cooling in investor sentiment toward the retail giant. The decline is slightly narrower than the industry’s 15% drop, but Walmart has sharply lagged the Zacks Retail – Wholesale sector’s 0.5% dip and the S&P 500’s 12.2% advance over the same period.
The divergence is striking because Walmart’s operating performance remains solid, with continued market share gains and strong digital growth. The pullback appears to reflect a combination of near-term cost and consumer concerns, softer U.S. comparable sales growth and a still-demanding valuation rather than a breakdown in the company’s long-term growth story.
Walmart has also lagged several prominent retail peers over the past three months. Shares of Target Corporation TGT have rallied 34.6 during the period, while Costco Wholesale Corporation COST and Dollar General Corporation DG have declined 10.2% and 9.5%, respectively.
What Is Weighing on Walmart Stock?
Despite Walmart’s resilient operating performance, several factors appear to be weighing on investor sentiment. A key concern is the increasingly challenging consumer backdrop. Management noted that shoppers, particularly those facing tighter household budgets, are making more deliberate spending choices amid elevated fuel costs and broader affordability pressures.
Walmart has responded by stepping up price investments and expanding rollbacks across categories. While this reinforces the company’s value positioning and can support market share gains over time, aggressive pricing can pressure near-term margins before higher volumes fully offset the investment. Management itself noted that the benefits from lower prices can take time to materialize.
Another drag is the health and wellness business, where regulatory changes have created considerable top-line pressure. Pharmacy deflation and brand-to-generic transfers associated with maximum fair price regulation have weighed on Walmart U.S. comparable sales. At the same time, the sales benefit from GLP-1 drugs has moderated from previous years. Management emphasized that these issues are largely affecting reported sales growth rather than undermining the underlying profitability or long-term attractiveness of the health and wellness business.
Cost pressures are another issue. Higher fuel expenses, depreciation tied to elevated capital spending, healthcare costs and self-insurance expenses are limiting operating leverage. Walmart is also reinvesting tariff refunds into lower prices and customer experience, which should strengthen its competitive position but may temper near-term profit growth. These factors, combined with a softer consumer environment, could explain why investors remain cautious despite Walmart’s otherwise healthy business momentum.
Walmart’s Estimate Revisions Signal Near-Term Caution
The Zacks Consensus Estimate for Walmart’s current- and next-fiscal-year EPS has moved lower over the past 30 days. The negative revision trend indicates increasing analyst caution around the near-term earnings trajectory and could restrict meaningful multiple expansion until estimates stabilize or begin moving upward.
Walmart’s Growth Engines Remain Powerful
Despite the near-term concerns, Walmart continues to possess several durable growth drivers that support its longer-term investment case. Its core retail business remains healthy, aided by a strong value proposition, broad assortment and increasing convenience. Walmart continues to gain market share across categories and income groups, including higher-income households. Underlying U.S. sales trends outside health and wellness have remained relatively steady, indicating that regulatory-driven pharmacy weakness does not necessarily reflect deterioration across the broader retail business.
Walmart’s rapidly expanding digital ecosystem remains one of its most important growth avenues. E-commerce continues to post strong growth across Walmart U.S., Sam’s Club and international markets, supported by store-fulfilled delivery and faster fulfillment. The company’s extensive physical store network gives it a significant last-mile advantage, enabling Walmart to combine low prices with increasingly rapid delivery. Higher delivery density, automation and improved fulfillment efficiency are also helping enhance the economics of the digital business.
Walmart is becoming less dependent on traditional retail margins as higher-margin businesses scale. Advertising, marketplace, membership and fulfillment services are becoming increasingly important contributors to growth and profitability. Management indicated that these newer businesses are already accounting for a meaningful portion of profit growth, supporting a structurally better earnings mix.
International expansion provides another avenue for growth as Walmart increasingly deploys its marketplace, membership and digital capabilities across markets. Investments in automation, technology and supply-chain infrastructure should further improve productivity and customer experience. Together, these initiatives strengthen Walmart’s ability to grow sales, deepen customer engagement and expand profitability over the long run.
WMT’s Premium Valuation Reflects Quality
WMT currently trades at a P/E multiple of 34.25, above the industry’s 31.33 and its five-year median of 24.9. The premium appears to reflect Walmart’s defensive business model, consistent market-share gains, expanding digital capabilities and improving contribution from higher-margin businesses such as advertising, marketplace and membership.
Walmart’s multiple is also substantially above Target and Dollar General, which trade at forward P/E multiples of 15.94 and 15.47, respectively. Costco, on the other hand, carries an even richer multiple of 40.01.
The valuation does not necessarily look excessive for a business with Walmart’s scale and consistency, but it does suggest that investors continue to assign meaningful value to successful execution of its growth strategy.
Image Source: Zacks Investment Research
WMT Stock Calls for a Balanced Approach
Walmart’s recent pullback has improved the stock’s entry point, while its long-term growth prospects remain supported by e-commerce, advertising, marketplace, membership and international expansion. Its strong value proposition should also aid continued market share gains.
However, pharmacy deflation, consumer pressure, elevated costs, ongoing price investments and downward earnings-estimate revisions warrant some caution. Given these near-term uncertainties and WMT’s still-premium valuation, a neutral stance appears appropriate. Existing investors may consider holding the stock, while prospective buyers may wait for a more attractive valuation or improving earnings estimate trends.
Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Should You Buy Walmart Stock After a 14% Decline in Six Months?

Uber Technologies UBER and Wakefern Food Corp. have expanded their partnership, enabling customers to shop from more than 375 Wakefern-affiliated supermarkets across the Northeast through Uber Eats. Participating banners include ShopRite, Price Rite Marketplace, The Fresh Grocer, Morton Williams, Dearborn Market, Di Bruno Bros., Fairway Market and Gourmet Garage. Uber Eats is the online food ordering and delivery platform of the company.
Through the Uber Eats app, customers can order from their preferred neighborhood supermarkets, many of which are family-owned and operated. Available products include fresh produce, meat, seafood, pantry staples, prepared foods and household essentials. Shoppers can choose between on-demand and scheduled delivery.
To mark the launch, Uber Eats is offering eligible customers discounts of up to 30% on their first order from participating Wakefern banners. Uber One members will be charged no delivery fee on eligible orders, along with other exclusive savings.
The collaboration gives Wakefern’s family-owned supermarkets another channel to serve communities across the Northeast. It allows customers to access the fresh products, value and neighborhood-focused service they expect, while benefiting from greater speed and convenience.
The launch also advances Uber Eats’ ongoing expansion in grocery and retail delivery. Adding Wakefern’s banners strengthens Uber’s grocery marketplace as demand for on-demand delivery of everyday essentials continues to grow across North America.
The partnership reflects rising consumer demand for flexible grocery-shopping options that maintain product selection and value. By bringing more than 375 supermarkets, including well-known banners such as ShopRite and Fairway Market, onto its platform, Uber Eats can support everything from full weekly grocery purchases to urgent, last-minute needs through a single app.
Last year, Uber inked a deal with retailer Best Buy BBY for on-demand delivery. This deal brought consumer electronics from more than 800 stores to the Uber Eats platform. Following the tie-up, Best Buy customers throughout the United States are eligible to order a wide range of electronics, appliances and tech essentials on Uber Eats for delivery to their doorsteps.
Apart from the deal with Best Buy, Uber’s agreements with discount retailers Dollar General DG and Dollar Tree DLTR were also on the same customer-friendly lines. The tie-up with Dollar General ensured that its more than 14,000 locations arrived on the Uber Eats platform. Following the association with Dollar General, customers are using the Uber Eats app to order food, beverages and other essentials.
The deal with Dollar Tree has also enhanced UBER’s retail delivery capabilities by adding nearly 9,000 stores to the Uber Eats platform. The partnership with Dollar Tree ensures that customers across states can easily access affordable items of everyday use, ranging from party supplies to cosmetics and home essentials for on-demand delivery.
UBER’s Share Price Performance, Valuation and Estimates
Shares of UBER have gained in low single digits (% wise) over the past three months. UBER’s shares have outperformed the Zacks Internet-Services industry over the same time frame.
3- Month Price Comparison
From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.26X. UBER is inexpensive compared with its industry.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Uber’s earnings has been revised over the past 90 days.
Uber’s Zacks Rank
Uber currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is Uber's Wakefern Food Deal on Grocery Delivery a Growth Catalyst?

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It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
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The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
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That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Dollar General (DG)
Headquartered in Goodlettsville, TN, Dollar General Corporation is one of the largest discount retailers in the United States. The company sells low-priced merchandise, typically $10 or less. Dollar General offers a wide selection of merchandise, including consumable items, seasonal items, home products and apparel. The company’s merchandise includes national brands from leading manufacturers and private brand offerings that are priced at discounts to many comparable national brands.
DG is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. DG has a Momentum Style Score of A, and shares are up 5.2% over the past four weeks.
11 analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.24 to $7.60 per share. DG also boasts an average earnings surprise of +19.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DG should be on investors' short list.
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Dollar General (DG) is a Top-Ranked Momentum Stock: Should You Buy?

Target Corporation’s TGT second-quarter fiscal 2026 results highlighted a pivotal shift in its revenue mix, driven by rapid expansion in non-merchandise revenues. Total net sales grew 5.3% year over year to $26,539 million, reflecting a 5% gain in merchandise sales and a 20.1% surge in non-merchandise sales. This increase underscores the growing momentum and operational scaling of Target’s alternative, higher-margin business initiatives.
The growth in non-merchandise sales was driven by continued expansion across Roundel advertising, Target Circle 360 membership revenues and the Target+ marketplace, showing that revenue streams beyond traditional product sales are becoming more meaningful within the business.
The underlying momentum was broad. Management said Roundel gross billings rose nearly 20% from a year ago, while Target+ marketplace gross merchandise value increased more than 40%. Target Circle 360 membership revenues also climbed more than 40%. These businesses extend Target’s relationship with guests and brands beyond merchandise transactions, adding advertising, marketplace and membership income to the company’s sales base.
Advertising revenues of $279 million in the quarter jumped from $217 million a year earlier. Other revenues increased to $174 million from $141 million, while credit card profit sharing edged up to $139 million from $134 million. Together, these components helped non-merchandise sales grow, well ahead of merchandise sales.
By leveraging its digital footprint, brand affinity and store traffic, Target is effectively monetizing guest engagement beyond traditional retail transactions. The surge in non-merchandise sales demonstrates that these strategic platforms are rapidly scaling, generating high-margin revenues and playing an essential role in diversifying Target’s overall business model as digital commerce and retail media continue to evolve.
How Does Target Stack Up Against Its Industry?
Target, which competes with Dollar General Corporation DG and Costco Wholesale Corporation COST, has seen its shares rally 32.7% over the past three months against the industry’s 3.6% decline. While shares of Dollar General have risen 24.7%, those of Costco have fallen 6% in the aforementioned period.
What Does Target’s Current Valuation Suggest?
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 15.77, lower than the industry’s 29.13. However, the stock is trading above its 12-month median level of 14.89.
Target is trading at a discount to Costco (forward 12-month P/E of 40.71) and Dollar General (17.53).
What Do Earnings Estimates Signal for Target?
The Zacks Consensus Estimate for Target’s earnings per share for the current and next fiscal year has increased by 16 cents and 9 cents to $10.43 and $9.36, respectively, over the past seven days.
Target currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Target's Non-Merchandise Sales Jump 20% as New Revenue Streams Scale

Key Points
Realty Income's properties have high occupancy rates.
The company has raised dividends quarterly for a number of years.
Using AFFO as a cash-flow proxy, Realty Income can easily afford the payouts.
Investors looking for a dividend-paying stock will find Realty Income (NYSE: O) a good choice. Many investors turn to real estate investment trusts (REITs) since the companies have to pay out at least 90% of their taxable income as dividends.
However, stock selection matters, and this REIT has a long history of raising dividends. More importantly, these appear safe, and the company's track record should continue for the foreseeable future. That's because Realty Income has plenty of cushion based on a key metric used for REITs.
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It's time to look more closely at Realty Income to find out why investors should feel confident in future dividends.
Sound business underlies strong dividend history
REITs own or finance different types of properties. In the case of Realty Income, most of its rent, more than 78%, comes from the retail industry. This includes companies like Dollar General, Home Depot, and Walmart.
While some investors may worry about the threat of online competition, Realty Income continues to receive higher rents and maintain high levels of occupancy. It had a 98.6% occupancy rate as of June 30, and it received a 2.7% rent increase on renewed leases in the second quarter.
With this kind of stability, Realty Income has built quite a track record of dividends. The board of directors raised dividends 135 times since 1994, including 115 straight quarters.
Affording the payouts
Realty Income pays dividends monthly, but it has raised them every quarter for nearly three decades. That includes nudging up July's payout from $0.2705 to $0.271 per share.
Of course, most companies don't raise dividends only to cut them a short time later. Still, it's useful to make sure Realty Income can afford the higher payout.
For REITs, adjusted funds from operations (AFFO) is an appropriate metric to compare to dividends. That's because AFFO measures cash available for distribution.
Notably, management recently raised its AFFO-per-share guidance. It now expects $4.44 to $4.45 per share, up from its previous guidance of $4.41 to $4.43.
For the second quarter, dividends were 74.5% of AFFO. Annualizing the current $0.271 monthly dividend rate equates to $3.252. At the low end of the company's AFFO guidance, that works out to 73.7%.
Realty Income's shares have a 5.3% dividend yield. That's about 5 times the S&P 500 index's 1.1% yield.
For investors looking for passive income, Realty Income fits the bill with its high yield and ability to sustain and continue to increase dividend payments.
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot, Realty Income, and Walmart. The Motley Fool has a disclosure policy.

Realty Income Is Paying More Dividends Than Ever Before and Yields 5.3%. Here's Why Its High-Yield Monthly Payout Is as Safe as It Gets.

Key Points
The dividend has risen for 32 straight years.
Many of America's top companies lease its properties.
Realty Income (NYSE: O) often escapes the notice of both investors and average Americans alike. Although many people may not recognize its name, they likely spend time in some of its nearly 15,600 properties regularly.
The company has existed since 1969, and it became a real estate investment trust (REIT) in 1994. It's payout has steadily risen over that 32-year history, and today, one has to buy 336 shares for around $20,600 to generate $1,000 in annual dividend income.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, whether that payout is sustainable means understanding its business and how much cash it generates. Let's take a closer look to see whether investors can truly trust its dividend.
The state of Realty Income
Realty Income specializes in net leased, single-tenant commercial properties. Under these arrangements, the tenants cover the costs of maintenance, insurance, and property taxes.
Properties like this have become increasingly popular for some of America's best-known companies. Walmart, Dollar General, and FedEx are among Realty Income's tenants, giving the company a stable revenue base.
Additionally, its properties were 98.8% occupied as of the end of the second quarter of 2026. These consistently high occupancies prompted it to buy or develop more of these properties over the years. The company slightly trimmed its property count in 2025 to unload properties it could not lease, but it has again added properties in 2026. Hence, its property base remains on a long-term growth trajectory.
The Realty Income dividend
Realty Income stands out as a dividend payer by making 12 dividend payments annually and even billing itself as the "monthly dividend company."
Moreover, it has raised its dividend every year since the 1994 IPO and typically passes along modest payout hikes every few months. Today's annual dividend stands at just over $3.25 per share, and shareholders benefit from a dividend yield of 4.85%, well over the S&P 500 (SNPINDEX: ^GSPC) average of 1.04%. Also, given the stock's performance over the current decade, the dividend is the primary source of returns.
The good news is that Realty Income's dividend is sustainable. Over the trailing 12 months, it earned $4.27 per share in funds from operations (FFO) income, a measure of the REIT's free cash flow. This is well above the $3.25-per-share dividend, leaving room for payout hikes and investment in the business.
Also, while most dividend stocks can theoretically cut dividends at any time, REITs like Realty Income must pay out at least 90% of their net income as dividends, making it unlikely that shareholders will lose this monthly income stream.
Furthermore, abandoning a 32-year streak of dividend increases tends to undermine confidence in a stock. Realty Income pays out well over 90% of its income, making a dividend cut theoretically possible. Still, given its aforementioned sustainability, investors can expect the payout hikes to continue.
Finally, Realty Income compares well with fixed-income investments such as bonds or certificates of deposit (CDs). While stock prices often fall and can struggle for years to move higher, with the 10-year Treasury at 4.80% as of this writing, Realty Income's dividend is generating higher cash returns than most fixed-income options.
Additionally, fixed-income instruments do not offer payout increases or the potential for long-term stock returns that could further boost total returns. Thus, if one can hold Realty Income over the long term, it makes sense for income investors to choose it over bonds or CDs.
Investing in Realty Income
Investors can almost certainly rely on Realty Income to earn a stream of income that is generous, rising, and, most importantly, sustainable.
Admittedly, the REIT is not as low-risk as a fixed-income instrument, and payout hikes and falling stock prices pose risks.
Fortunately, the company benefits from a high occupancy and a client base that can be relied on to cover lease payments. Moreover, it has long been in a growth mode, as evidenced by its 32-year streak of payout hikes that lag its FFO income. This means that if one is willing to hold Realty Income stock for the long term, dividend and stock price growth should sustainably deliver profits to its shareholders.
Should you buy stock in Realty Income right now?
Before you buy stock in Realty Income, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,833!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,402,153!*
Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Will Healy has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income and Walmart. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.

All It Takes Is 336 Shares of Realty Income Stock to Generate $1,000 in Yearly Dividends. Here's Whether the Payout Is Safe.

Costco Wholesale Corporation’s COST August sales reflected resilient consumer demand, with comparable sales advancing across regions and digitally enabled sales maintaining strong momentum. The company continues to benefit from its value-driven pricing, quality merchandise, and broad warehouse footprint, which are helping attract shoppers in a cautious consumer environment.
Breaking Down Costco’s August Sales Numbers
For the four weeks ended Aug. 30, 2026, Costco reported an 8.4% year-over-year increase in total comparable sales. Regionally, comparable sales rose 9% in the United States, 4% in Canada and 9.5% in Other International markets. This compares with total comparable sales growth of 8.9% and 8.8% in July and June, respectively.
Excluding the impacts of gasoline prices and foreign exchange, comparable sales increased 5.6% in the United States, 2.8% in Canada and 6.8% in Other International markets. Overall, total comparable sales, excluding these factors, rose 5.4% in July compared with increases of 6.6% in July and 7% in June.
Digitally enabled comparable sales remained a key growth driver, rising 17.9% in August. This followed growth of 17.7% in July and 20.9% in June.
Costco’s August net sales increased 9.9% year over year to $23.70 billion from $21.56 billion. This compares with net sales growth of 10.7% in July and 10.6% in June.
With Labor Day falling a week later in the United States and Canada this year, the calendar shift reduced August total and comparable sales by just under 75 basis points.
Costco appears to have several factors supporting continued sales growth, including its value proposition, steady warehouse traffic and rapidly expanding digital business. August’s broad-based comparable sales gains also suggest that growth is not dependent on a single market.
How Does Costco Stack Up Against Its Industry?
Costco, which competes with Dollar General Corporation DG and Target Corporation TGT, has seen its shares jump 7.3% year to date compared with the industry’s 7.4% rise. While Dollar General shares have fallen 1.2%, Target has surged 67.7% over the same period.
Image Source: Zacks Investment Research
What Does Costco’s Current Valuation Suggest?
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 45.26, higher than the industry’s ratio of 27.97. However, the stock is trading marginally below its 12-month median level of 45.49, indicating some moderation in valuation.
Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 16.84) and Dollar General (16.79).
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Costco?
The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share suggests year-over-year growth of 9.7% and 13.5%, respectively. For the next fiscal year, the consensus estimate points to sales growth of 7.8% and earnings growth of 10.2%.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).

Costco's August Sales Rise 9.9% as Digital Growth Stays Strong

Target Corporation TGT is leaning into its high-performing categories to maintain top-line growth, placing beauty at the forefront of its retail strategy. During the second quarter of fiscal 2026, the retailer experienced high single-digit net sales growth in its beauty segment. Building on this sustained momentum, Target is taking a bold step in its Beauty strategy with the Sept. 10 launch of Target Beauty Studio in more than 600 stores nationwide and on Target.com.
The new concept will feature more than 1,600 products from 90 prestige, emerging and global brands, with more than two-thirds of the featured brands new to Target. In the second quarter, Beauty net sales rose to $3,639 million from $3,396 million a year earlier. Management had also highlighted sustained guest response to Beauty investments made earlier in the year.
Target Beauty Studio takes that strategy beyond assortment expansion. The concept centers on discovery, combining dedicated Beauty Advisors with product testing, rotating features, exclusive Target Circle offers and a center table that showcases brands through storytelling and sampling. The assortment spans skincare, makeup, haircare, fragrance, bath and body, nails and other fast-evolving beauty segments.
The launch also adds a stronger prestige and global dimension through brands such as Sunday Riley, Briogeo, Rom&nd, Lake & Skye and Tan-Luxe. Target had previously described Beauty Studio as an elevated, immersive experience supported by dedicated advisers.
As one of seven core priority areas receiving disproportionate capital and operational resources, the beauty segment represents a key pillar in Target’s effort to drive relevance with busy families. The upcoming studio expansion marks the next chapter in Target’s multi-year effort to expand its merchandising authority in beauty.
How Does Target Stack Up Against Its Industry?
Target, which competes with Dollar General Corporation DG and Costco Wholesale Corporation COST, has seen its shares rally 31.9% over the past three months against the industry’s 2.2% decline. While shares of Dollar General have risen 26.4%, those of Costco have fallen 4.5% in the aforementioned period.
What Does Target’s Current Valuation Suggest?
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 16.77, lower than the industry’s 28.25. However, the stock is trading above its 12-month median level of 14.61.
Target is trading at a discount to Costco (with a forward 12-month P/E ratio of 45.42) but at a premium to Dollar General (16.75).
What Do Earnings Estimates Signal for Target?
The Zacks Consensus Estimate for Target’s earnings per share for the current and next fiscal year has increased by $2.08 and 44 cents to $10.42 and $9.31, respectively, over the past 30 days.
Target currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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This article originally published on Zacks Investment Research (zacks.com).

Target Expands Beauty Strategy With 600-Store Studio Rollout

For Immediate Release
Chicago, IL – August 31, 2026 – Stocks in this week’s article are Dollar General DG, Envista Corp. NVST, Match Group MTCH and The Allstate Corp. ALL.
4 PEG-Based Value Stocks to Buy as Investors Look Beyond AI
As August draws to a close, the stock market is hovering near record levels, even as elevated Treasury yields, persistent inflation concerns and softer economic signals add to uncertainty. At the same time, recent gains have been heavily concentrated in technology and AI stocks, leaving many fundamentally sound companies outside the market's strongest-performing areas. This divergence is creating an opportunity for investors to look beyond high-momentum names and seek quality businesses whose stocks are trading at more reasonable valuations.
Against this backdrop, value investing can offer an attractive approach. When market uncertainty prompts investors to sell fundamentally sound companies, their shares can become available at discounted valuations. Value investors seek to capitalize on such dislocations by identifying stocks whose market prices do not fully reflect their underlying earnings potential.
Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks — Dollar General, Envista Corp., Match Group and The Allstate Corp..
However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to "value traps." In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent.
There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.
However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where the importance of a not-so-popular value investing metric, the PEG ratio, lies.
PEG Ratio at a Glance
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn't consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Our PEG-Driven Picks
Here are four stocks that qualified the screening:
Dollar General: Headquartered in Goodlettsville, TN, Dollar General is one of the largest discount retailers in the United States. The company sells low-priced merchandise, typically $10 or less. Dollar General offers a wide selection of merchandise, including consumable items, seasonal items, home products and apparel.
Dollar General has a Zacks Rank #2 and a Value Score of A. DG also has an impressive five-year expected growth rate of 8.9%.
Envista: Headquartered in Brea, CA, Envista provides dental solutions through more than 30 brands, including Nobel Biocare, Ormco, DEXIS and Kerr. Its Specialty Products & Technologies segment, which generated 64.4% of 2025 revenues, offers dental implants, orthodontic products, aligners, prosthetics, treatment software and related technologies.
NVST currently has a Zacks Rank #1 and a Value Score of B. Envista also has an impressive five-year expected growth rate of 13.7%. You can see the complete list of today's Zacks #1 Rank stocks here.
Match Group: Based in Dallas, TX, Match Group is a global provider of digital technologies designed to help people make meaningful connections. The company has several promising growth drivers, led by Hinge, where product innovation, international expansion and additional monetization opportunities support long-term potential.
MTCH currently has a Zacks Rank #1 and a Value Score of A. Match Group also has an impressive five-year expected growth rate of 20.7%.
Allstate: Headquartered in Northbrook, IL, Allstate is the third-largest property and casualty (P&C) insurer and largest publicly held personal-lines carrier in the United States, serving approximately 16 million households. In 2025, revenues rose to $67.7 billion, supported by continued growth in P&C premiums and higher net investment income.
Apart from a discounted PEG and P/E, ALL currently has a Zacks Rank #1 and a Value Score of A. Allstate has a long-term expected growth rate of 19%.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2982112/4-peg-based-value-stocks-to-buy-as-investors-look-beyond-ai
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Strong Stocks that Should Be in the News
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Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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This article originally published on Zacks Investment Research (zacks.com).

Dollar General Corporation

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