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 Corporation демонстрирует смешанную картину на фоне своих фундаментальных метрик. С одной стороны, компания имеет сильные показатели по EBITDA, EPS и чистой прибыли, что свидетельствует о наличии устойчивого финансового положения и способности генерировать прибыль. Однако, высокое соотношение долга к капиталу и низкие показатели маржи (чистая и операционная) указывают на определенные риски, связанные с долговой нагрузкой и эффективностью. Дивидендная доходность также снизилась, что может негативно сказаться на привлечении инвесторов. Сравнение с отраслевыми медианами показывает, что Dollar General имеет некоторые сильные стороны, такие как высокая рентабельность капитала и значительная выручка, однако, это компенсируется недостатками в ряде других областей, включая низкие коэффициенты ликвидности. В целом, данные факторы требуют осторожного подхода к оценке компании и её будущим перспективам.

Dollar General Corporation

Key Points
Realty Income is one of my largest stock positions, and it is well-positioned to deliver excellent long-term total returns.
Prologis is one of the largest real estate owners in the world and has favorable growth tailwinds.
Both REITs have excellent financial strength and could deliver market-beating total returns.
I own about 40 stocks in my portfolio, and while I believe in all the companies I own, there are only a few I'd be comfortable doubling my investment in. However, there are two dividend stocks in particular that are exceptions. Both of these are already rather large positions in my portfolio, but if I had cash on the sidelines and wanted to grow my passive income, I'd be completely fine doubling my positions in these two.
A monthly dividend machine
In full disclosure, Realty Income (NYSE: O) is already one of my biggest stock investments. And I would still be comfortable doubling my position.
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If you aren't familiar, Realty Income is a real estate investment trust, or REIT, that specializes in freestanding commercial real estate. It owns more than 15,000 properties, most of which are occupied by retail tenants, and it also has industrial, gaming, and agricultural properties in its portfolio.
The business model is designed for excellent total returns and a growing income stream. Tenants sign long-term net leases, which makes them responsible for taxes, insurance, and maintenance, and there is typically an annual rent increase built in. And most of Realty Income's tenants are top-quality, recession-resistant businesses like Dollar General (NYSE: DG), FedEx (NYSE: FDX), and Walgreens, all of which are among the largest tenants.
Realty Income has averaged a 13.3% total return since it went public in 1994, has a 5.1% dividend yield paid monthly, and has increased its dividend for 114 consecutive quarters.
Big tailwinds and financial flexibility
Industrial REIT Prologis (NYSE: PLD) is one of the world's largest real estate owners, with almost 1.2 billion square feet of rentable space worldwide. To put that in perspective, consider that the space Prologis owns is roughly double the size of Manhattan.
This massive REIT owns logistics properties. If you've ever seen one of those massive Amazon (NASDAQ: AMZN) distribution centers, that's the type of property I'm talking about. Other top tenants include FedEx (NYSE: FDX) and DHL, but there are thousands of other businesses that rely on Prologis for their logistics real estate needs.
Prologis' management has said that the business is at an inflection point. Essentially, during the COVID-19 era, when most retail was forced to shift to e-commerce, demand for industrial properties spiked, leading to oversupply conditions. However, we're seeing supply and demand approaching equilibrium, and the e-commerce industry is likely to steadily expand for decades to come. Prologis has the financial strength to capitalize on improving conditions and opportunities.
In addition to its core logistics real estate business, Prologis has been quietly leveraging its expertise (and balance sheet) to invest in data center properties, which could create a rapidly growing second revenue stream.
Should you buy stock in Realty Income right now?
Before you buy stock in Realty Income, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $492,752!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,327,935!*
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Matt Frankel, CFP has positions in Amazon, Prologis, and Realty Income. The Motley Fool has positions in and recommends Amazon, Prologis, and Realty Income. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

I'd Double My Position in These 2 Dividend Stocks Without Thinking Twice

Costco Wholesale Corporation COST and Dollar General Corporation DG stand out prominently in the Retail–Discount Stores industry. Costco boasts a substantial market capitalization of approximately $442.8 billion, operating on a membership-based warehouse model that sells goods at discounted prices. The company manages a network of 928 warehouses globally, including 637 in the United States and Puerto Rico.
In contrast, Dollar General has a market capitalization of around $25.8 billion and operates a vast network of more than 20,000 stores across rural, suburban and urban areas. Known for its commitment to everyday low prices and essential household items, Dollar General has carved out a niche as a preferred shopping destination for budget-conscious consumers.
With consumer spending shifting and economic crosscurrents reshaping shopping behavior, the key question for investors is which discount retailer is better positioned to deliver stronger returns from here.
The Case for Costco
Costco continues to demonstrate the strength of its membership-driven model, which underpins a stable and recurring revenue base. The annual fee structure not only ensures predictable income but also reinforces a sense of exclusivity and value for members. This dynamic was evident in the second quarter of fiscal 2026 when membership fee income advanced 13.6% year over year, supported by robust renewal rates of 92.1% in the United States and Canada and 89.7% globally, highlighting strong customer engagement.
The company’s focus on value remains central to its competitive positioning. By offering high-quality merchandise at prices lower than its peers, Costco reinforces customer loyalty and encourages frequent store visits. Its curated merchandising strategy, featuring a dynamic assortment of essentials, seasonal goods and unique offerings, keeps the shopping experience engaging while driving incremental purchases.
Private label expansion remains a key differentiator, with the Kirkland Signature brand playing an important role in driving both customer loyalty and margin efficiency. Known for delivering premium quality at compelling price points, Kirkland enhances Costco’s value proposition. The ongoing addition of new products across categories strengthens brand equity and supports profitability. Costco launched about 30 new Kirkland items in the second quarter.
At the same time, Costco is leveraging technology to enhance the overall member experience and operational efficiency. Investments in digital capabilities are yielding tangible results, with online sales benefiting from strong traffic growth across both the website and mobile app. Enhancements such as mobile payment solutions, pharmacy pre-payment options and in-store automation initiatives are streamlining the shopping and complementing the company’s integrated omnichannel approach.
Costco’s growth trajectory remains supported by a disciplined expansion strategy. The company continues to add new warehouse locations in high-potential markets while maintaining a measured pace that supports productivity and returns. For fiscal 2026, the company expects to open 28 net new warehouses and is targeting 30-plus warehouse openings annually over the longer term. With plans to accelerate new openings in the coming years, this steady expansion, combined with strong membership growth, positions Costco well to sustain long-term revenue and earnings momentum.
The Case for Dollar General
Dollar General has been gaining market share, supported by its resilient product mix, strategic focus on value and real estate expansion. The company’s “back-to-basics” initiative has strengthened its operational foundation, reinforcing a model that tends to hold up when consumer budgets are pressured. This positioning helps sustain customer traffic and broaden the shopper base, including increased engagement from higher-income households seeking everyday value.
DG has made meaningful progress in areas such as inventory management, shrink reduction and store-level efficiency, all of which are driving better profitability. Through ongoing remodel initiatives and the introduction of updated store formats, Dollar General is improving the shopping experience, increasing product visibility and driving higher customer engagement. These initiatives are designed not only to boost sales but also to strengthen brand perception and customer loyalty.
Dollar General’s Project Renovate and Project Elevate programs are important catalysts because they target the mature store base, where the company can improve productivity without relying only on new unit expansion. Management continues to target approximately 6% annualized comp lift from Project Renovate stores and approximately 3% from Project Elevate stores. In 2026, it plans roughly 2,000 Renovate remodels and 2,250 Elevate remodels.
Dollar General is also building new growth engines that extend beyond its traditional retail model. Its expanding digital ecosystem, including myDG delivery and partnerships with DoorDash and Uber Eats, along with its growing retail media platform, DG Media Network, is opening up incremental revenue and profit opportunities. These initiatives improve customer convenience while creating higher-margin income streams through advertising and digital engagement. At the same time, the company is investing in non-consumable categories, private brands and merchandising innovation, which diversifies its product mix and supports margin expansion over time.
That said, DG still faces pressure from a financially stretched core customer, sticky inflation, possible tariff costs and changing consumer behavior, all of which could weigh on traffic, basket size and discretionary purchases. Margin gains from shrink reduction and inventory improvements may also become harder to repeat, while ongoing investments could pressure expenses.
COST vs. DG: How Do Estimates Stack Up?
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8.5% and 13%, respectively. For the next fiscal year, the consensus estimate indicates a 7.5% rise in sales and 10% growth in earnings. Over the past 60 days, the Zacks Consensus Estimate for the current and next fiscal year has risen by 12 cents and 25 cents, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Dollar General’s current financial-year sales and earnings per share calls for year-over-year growth of 4% and 6.3%, respectively. For the next fiscal year, the consensus estimate indicates a 4.1% rise in sales and 9.8% growth in earnings. Over the past 60 days, the Zacks Consensus Estimate for the current and next fiscal year has risen by 12 cents and 8 cents, respectively.
Image Source: Zacks Investment Research
COST vs. DG: A Look at Past-Year Stock Performance
While operating in the same industry, Costco and Dollar General have seen markedly different stock performance. Costco shares have advanced 15.8% in the year-to-date period, whereas Dollar General has declined 11.6%.
Image Source: Zacks Investment Research
COST vs. DG: A Peek Into Stock Valuation
Costco trades at a forward price-to-earnings (P/E) ratio of 46.08, modestly below its one-year median of 47.12, but still at a premium to the industry average of 32.97. By contrast, Dollar General’s forward P/E of 15.75 sits above its median of 17.84, yet remains below the broader industry level.
Image Source: Zacks Investment Research
COST vs. DG: Which Stock Looks More Promising Now?
Costco appears better positioned than Dollar General at this stage. Its membership-based model creates dependable recurring revenues, deep customer loyalty and strong traffic stability, while its private-label strength, disciplined global expansion and improving digital capabilities add further support to long-term growth. Dollar General still offers a solid value-oriented story, backed by operational improvements, remodel initiatives and new growth platforms, but its performance remains more exposed to pressure on lower-income consumers, inflation, tariff risk and the need to execute several initiatives at once. For now, Costco’s steadier business model and clearer earnings visibility make it the more promising discount retail stock.
Both Costco and Dollar General carry 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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Costco vs. Dollar General: Which Discount Retailer Holds More Promise?

Ollie's Bargain Outlet Holdings, Inc. OLLI is positioning its long-term growth story around an ambitious target of more than 1,300 stores, a goal that implies roughly doubling its current footprint. As of the fiscal 2025 end, the company operated 645 stores across 34 states, highlighting that it is only about halfway toward that objective.
This target hinges on sustained expansion momentum. Ollie's Bargain opened a record 86 stores in fiscal 2025, a significant jump from its previous high of 50 stores, reflecting a step-change in execution capabilities. This acceleration was supported by a shift to a soft opening strategy, enabling earlier launches and smoother scaling. OLLI plans to open 75 stores in fiscal 2026, still robust but slightly below the prior year’s peak.
Another key factor supporting the long-term path is the external environment. Management highlighted strong real estate availability and ongoing retail consolidation, which is creating access to attractive locations and deal flow. These dynamics appear central to enabling geographic expansion into new states while deepening presence in existing markets.
Management also indicated that longer-term unit growth is likely to settle around 10% annually. This implies that while the 1,300-store ambition is structurally supported, its realization will likely depend on disciplined, multi-year expansion rather than rapid acceleration. By maintaining a debt-free balance sheet and strong cash generation, the company appears well-positioned to fund this ambitious expansion internally.
What the Latest Metrics Say About Ollie's Bargain
Ollie's Bargain, which operates in the closeout retail and discount merchandise space and competes with companies such as Dollar General Corporation DG and Dollar Tree, Inc. DLTR, has seen its shares tumble 16% over the past year compared with the industry’s decline of 13.2%. Shares of Dollar General and Dollar Tree have risen 30.6% and 29.5%, respectively, in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, OLLI's forward 12-month price-to-sales ratio stands at 1.78, lower than the industry’s ratio of 2.20. However, Ollie's Bargain is trading at a premium to Dollar General (with a forward 12-month P/S ratio of 0.59) and Dollar Tree (0.98).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OLLI's current financial-year sales and earnings per share implies year-over-year growth of 13.4% and 16.1%, respectively. For the next fiscal year, the consensus estimate indicates a 11.5% rise in sales and 13.5% growth in earnings.
Image Source: Zacks Investment Research
Ollie's Bargain 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ollie's Bargain 1300 Store Goal: How Realistic Is the Long-Term Path?

Key Points
Realty Income has a long history of paying -- and increasing -- dividends.
It pays its dividends monthly, too.
The company is growing on its own and inking deals to help it grow faster.
So you've got $1,000 burning a hole in your pocket and you're looking for a great stock to invest in with it. May I suggest Realty Income (NYSE: O)?
Why Realty Income? Well, I like it (and own it) for many reasons. Here are a few.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
For starters, it's a real estate investment trust (REIT) -- a company that owns lots of real estate, leasing it to tenants. REITs are required by law to distribute at least 90% of their taxable earnings as dividends, so they tend to be generous dividend payers. Realty Income's dividend yield was recently a fat 5%. On top of that, the company has been paying its dividends for more than 650 consecutive months and has upped its payout 134 times in 32 years.
With a 5% dividend yield, a $10,000 investment today will generate $500 in annual income -- and that payout will most likely grow over time. If it grows by 4% annually, you're looking at about $740 in annual income in just 10 years.
Interestingly, while most dividend payers pay quarterly, this one pays monthly. That's not necessarily a big deal, but if, say, you're in retirement and relying on dividend income for much of your daily needs, it can be handy to have it coming in every month, along with your Social Security benefits.
Realty Income's business model is appealing, too: It uses "triple-net leases," which require its tenants to cover real estate taxes, property insurance, and operating expenses. In exchange, its tenants generally receive modest annual rent increases, often around 1%.
The company boasts a total compound annual return of 13.3% since it was listed on the New York Stock Exchange in 1994, and a 4.2% compound annual dividend growth rate since then, too. It has around 15,500 properties leased to tenants, and its top tenants include companies such as 7-Eleven, Dollar General, Walgreens, Home Depot, and FedEx.
While the company is able to grow organically, buying more properties with the income it generates, it's also been spurring more growth via more creative means. For example, it has inked a $1 billion partnership with alternative investment manager Apollo Global Management -- which will provide funding to buy more properties. It has other joint ventures, as well, and may keep adding more.
This should be a quite attractive portfolio candidate for any long-term investors seeking income. (Remember that it's not just retirees who can use the income. Younger investors can always redeploy that money into more stock!) Give it some consideration -- and perhaps consider some other compelling dividend payers, too.
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 $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
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*Stock Advisor returns as of April 26, 2026.
Selena Maranjian has positions in Realty Income. The Motley Fool has positions in and recommends Home Depot and Realty Income. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

$1,000 and the Right Dividend Stock: This Is the One to Buy Right Now

Key Points
Coca-Cola has global brand strength and a long dividend-growth streak.
Dollar General's massive store base dominates retail in rural America.
TJX Companies has delivered steady same-store sales through a challenging consumer spending environment.
Costco Wholesale stock surged out of the gate in 2026, with the shares currently up about 17% year to date. It has benefited from investors' desire for more defensive consumer goods stocks amid caution around heavy technology spending and the broader economy.
But the downside to buying Costco stock right now is its high valuation, trading at 49 times forward earnings. Investors can find other quality, resilient consumer goods companies with solid growth prospects at much lower valuations. Here are three other S&P 500 consumer goods stocks to consider.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Coca-Cola
Coca-Cola (NYSE: KO) offers similar defensive qualities and durable business advantages at a significantly lower valuation than Costco. The stock is up 7% year to date and offers an attractive combination of steady sales and a solid dividend yield.
Coca-Cola's retail relationships and the events where it markets its brands create many opportunities to generate sales. People consume an estimated 2.2 billion servings of Coke's products every day. Top brands like Diet Coke, Sprite, Fanta, and Powerade help fuel a $48 billion-per-year beverage empire.
About 85% of annual sales come from concentrate syrups, with packaged products accounting for 15%. This mix has shifted toward syrups over the last decade, reflecting management's strategy to drive higher margins and move away from capital-intensive products.
Last year, Coca-Cola posted $13 billion in net income, representing a profit margin of 27%. For 2026, management guided for around 4% to 5% organic revenue growth and 7% to 8% earnings growth, suggesting further margin expansion ahead.
Coca-Cola is rightly named a Dividend King, a title reserved for any company that has raised its annual dividend for at least 50 consecutive years. The company has increased its dividend for 64 straight years and currently offers a forward yield of 2.8%, supported by a payout ratio of about 67%. It looks like a solid buy, trading at a forward price-to-earnings (P/E) multiple of 23.
Dollar General
Dollar General (NYSE: DG) is another resilient S&P 500 consumer goods company with an attractive valuation. This dollar store stock suffered a major drawdown a few years ago, but that created an excellent buying opportunity. The company has posted consistent same-store sales growth over the last 36 years. Since 1990, the only negative year was 2021.
The business has a strong advantage serving rural America with everyday essentials at value prices. It operates about 21,000 stores that reach roughly 75% of the U.S. population. Last year, this translated to $42 billion in sales, with same-store sales growth of 3% -- consistent with its historical average.
Management has been investing in improving the business. New store formats, remodel programs, and expansion into non-consumable products like toys and apparel are driving higher sales.
The stock trades at a forward price-to-earnings (P/E) of 17 with an above-average dividend yield of 1.90%, supported by a 34% payout ratio. The company's durable moat in rural markets and progress on growth initiatives should make it a solid long-term holding.
The TJX Companies
The TJX Companies (NYSE: TJX) is a value-based retailer that also offers relatively good value compared to Costco. It creates a treasure-hunt atmosphere by sourcing from thousands of vendors worldwide. Customers are drawn to big discounts on name-brand merchandise, and the business still has a long runway ahead.
TJX has over 5,200 stores in nine countries. It turns inventory quickly, making it resilient during tough economic times. Despite choppy consumer spending over the past few years, same-store sales growth has ranged between 4% and 5% across its stores, including TJ Maxx, Marshalls, and HomeGoods.
Management is encouraged by recent customer responses to the assortment of merchandise and the values it has been able to secure. This is already a large business with over $60 billion in annual sales, but management sees significant global expansion ahead, targeting more than 7,000 stores.
Consumers love a good deal, and few do it better than TJX. The stock trades at 31 times this year's earnings. It's an excellent alternative for investors seeking other quality consumer goods stocks that rival Costco's resiliency at lower valuations.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, 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 Coca-Cola 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 $499,277!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,225,371!*
Now, it’s worth noting Stock Advisor’s total average return is 972% — a market-crushing outperformance compared to 198% 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.
*Stock Advisor returns as of April 22, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and TJX Companies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Costco's Surge, Here Are the 3 Best S&P 500 Stocks to Buy Now

Key Points
Realty Income has paid a monthly dividend since 1994 and periodically increases its payout.
PepsiCo's challenges are likely not a threat to its Dividend King status.
Investors can buy J.M. Smucker at a considerable discount, giving it an attractive dividend yield.
Unlike growth investors, dividend investors tend to be more risk-averse and focus on earning income that is safe and, ideally, growing over time. This is true of most dividend stocks, as those companies have the freedom to adjust dividend payments at any time for any reason.
To protect themselves from this, investors tend to target stocks that increase their dividends at least once a year. In these cases, confidence in the stock relies partially on these periodic payout hikes, making it unlikely a company would cut or eliminate a dividend if it can afford to pay it.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
That strategy allows income investors to sleep soundly, as these stocks will likely continue providing steady, reliable dividend income.
Realty Income
Realty Income (NYSE: O) owns about 15,500 single-tenant net-leased properties. Under the terms of these agreements, the tenant covers taxes, insurance, and maintenance, leaving the real estate investment trust (REIT) with a steady revenue source.
Its client base includes stalwarts such as Dollar General, Wynn Resorts, and FedEx, and with its property base nearly 99% leased, it is continuously working to develop and acquire similar properties.
Moreover, Realty Income bills itself as the "Monthly Dividend Company," and true to its name, has paid a dividend every month since 1994. This annual payout of almost $3.25 per share offers a dividend yield of 5%, far above the S&P 500 average of 1.1%. The payout has also risen at least once per year since inception, likely indicating that the trend will continue.
Furthermore, the stock is less expensive than it appears. Even though it has a 55 P/E ratio, the more meaningful metric for this REIT is funds from operations (FFO) income, which is a measure of its free cash flow.
The company generated $4.25 per share in FFO income. That not only covers the dividend, but also gives it a price-to-FFO ratio of 15, meaning investors can buy this stock at a bargain while they hold a stock built for income.
PepsiCo
Investors know PepsiCo (NASDAQ: PEP) best for its flagship cola beverage, though it also owns brands such as Gatorade, Tropicana, Doritos, and Quaker.
Today, consumers have become health-conscious and have more frequently avoided such products. In response, the company has emphasized products with less sugar and sodium and has acquired brands like Siete Foods to more closely align with evolving consumer tastes.
Despite such worries, PepsiCo is a Dividend King by virtue of its 54 straight years of payout hikes. This streak shows that it can stay successful in good times and bad. The current dividend of $5.69 per share yields about 3.6%.
Furthermore, its efforts may have started to boost sales. Net revenue rose 2% in 2025, and by almost 9% in the first quarter of 2026, indicating it has managed to keep growth positive despite headwinds. Also, in 2025, the $9.3 billion in free cash flow over the trailing 12 months covered the $7.7 billion in dividend costs even under challenging conditions, meaning the payout is likely still safe.
Also, the 26 P/E ratio is slightly below its five-year average of 27. Considering its diverse product portfolio and proven ability to maintain dividend growth over time, PepsiCo is likely to keep income investors happy.
J.M. Smucker
Like PepsiCo, J.M. Smucker (NYSE: SJM) is a portfolio of consumer brands under one umbrella. Aside from its Smucker's fruit spreads, its also owns Jif peanut butter, Folgers coffee, Hostess cakes, and Meow Mix cat food.
Nonetheless, sales have suffered as its acquisition of Hostess Cakes has brought integration challenges. Also, sales levels have not lived up to expectations, and the company faces pressure from rising commodity prices.
However, that could play into the hands of dividend investors, especially since J.M. Smucker's payout has risen for 24 straight years. The current yearly payout of $4.40 per share now yields 4.7%.
In the first nine months of fiscal 2026 (ended Jan. 31), sales rose by 3% compared to year-ago levels. Furthermore, its free cash flow of $672 million for the first three quarters of the fiscal year easily covered its $348 million in dividend costs.
Admittedly, the stock has trended downward since 2023, and sells at a discount of more than 40% from its all-time high. Still, the stock's P/E ratio has fallen to 22, and for those buying the stock for the payout, J.M. Smucker remains well positioned to sustain its high-yielding dividend.
Should you buy stock in Realty Income right now?
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Will Healy has positions in Realty Income. The Motley Fool has positions in and recommends J.M. Smucker and Realty Income. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

I'd Buy These 3 Dividend Stocks Today and Sleep Easy Tonight

Tractor Supply Company TSCO is likely to register an increase in the top and bottom lines when it reports first-quarter 2026 results on April 21, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.6 billion, indicating a 4.9% jump from the year-ago figure.
The bottom line of the leading rural lifestyle retailer in the United States is expected to have risen year over year. The Zacks Consensus Estimate for earnings per share has been unchanged at 35 cents in the past 30 days, indicating a 2.9% rise from the year-ago period’s figure.
Tractor Supply Company Price, Consensus and EPS Surprise
Tractor Supply has a negative trailing four-quarter earnings surprise of 2.8%, on average. In the last reported quarter, this Brentwood, TN-based company’s earnings missed the Zacks Consensus Estimate by 6.5%.
Key Factors Likely to Impact TSCO’s Q1 Results
TSCO's first-quarter fiscal 2026 results are expected to reflect a mixed demand environment, shaped by tough year-over-year comparisons and weather-related volatility. Management noted that the quarter began against challenging comparisons tied to prior-year winter conditions, with early-season temperature swings creating uneven demand patterns. However, storm-related demand and seasonal needs have supported trends, and the company indicated that performance has been tracking at or above internal plans early in the quarter.
A key factor influencing the quarter is the timing and strength of the spring selling season, which historically represents a meaningful revenue driver. Management highlighted that March typically contributes more than 40% of first-quarter sales, making weather normalization and seasonal demand critical to overall performance. Expectations for improved spring conditions and potential support from tax refund spending are likely to aid traffic and category demand during the latter half of the quarter.
Expense pressures are expected to remain a near-term headwind, particularly from SG&A-related investments and store expansion activities. The company indicated that the first quarter will carry a heavier burden from factors such as new store openings, normalized incentive compensation and continued strategic investments. These cost dynamics are likely to limit margin expansion and keep first-quarter earnings growth relatively muted compared with later periods in the year.
Tariff-related costs and modest inflation in product pricing are also expected to influence profitability in the near term. Management noted that tariff pressures have contributed to higher product costs, although ongoing cost-management initiatives and selective pricing actions have helped offset part of the impact. The company anticipates tariff effects in the first half of fiscal 2026 to remain similar to those experienced in late fiscal 2025, suggesting continued margin sensitivity during the quarter.
On the positive side, continued traction from strategic growth initiatives is likely to support top-line momentum. Investments in Direct Sales, Final Mile delivery and private-label offerings are expected to contribute incremental sales and improve customer engagement over time. Management expressed confidence that these initiatives, along with steady demand in needs-based consumable categories, position the company for gradual improvement as fiscal 2026 progresses beyond the first quarter.
Our model indicates a 7.4% year-over-year increase in SG&A expenses for the first quarter, with the SG&A expense rate rising 50 basis points to 26.1%. Depreciation and amortization expenses are expected to increase 5.3% year over year.
What the Zacks Model Unveils for TSCO?
Our proven model does not conclusively predict an earnings beat for Tractor Supply this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Tractor Supply has an Earnings ESP of +1.2% and a Zacks Rank of 4 (Sell) at present.
Valuation & Price Performance of TSCO Stock
From a valuation perspective, Tractor Supply stock trades at a premium relative to the Retail - Miscellaneous industry. The company has a forward 12-month price-to-earnings ratio of 20.06X, above the industry’s average of 17.03X. However, the stock trades below the historical benchmarks, with a five-year high of 27.91X.
TSCO Stock P/E Valuation
Image Source: Zacks Investment Research
TSCO shares have lost 11.7% in the past three months compared with the industry's 10.9% decline.
TSCO Stock's Price Performance
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are a few companies that have the right combination of elements to post an earnings beat this time around:
FIGS, Inc. FIGS has an Earnings ESP of +20.00% and sports a Zacks Rank of 1 at present. FIGS’ earnings for the first quarter of 2026 are pegged at a penny per share. The consensus mark for its quarterly earnings was stable in the past 30 days.The company reported an increase of a penny as compared to the year-earlier quarter figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ quarterly revenues is pegged at $149.8 million, which suggests growth of 20% from the figure reported in the prior-year quarter. FIGS has a trailing four-quarter earnings surprise of 187.5%, on average.
Ulta Beauty, Inc. ULTA has an Earnings ESP of +1.28% and a Zacks Rank #3 at present. The consensus estimate for Ulta Beauty’s first-quarter fiscal 2026 earnings is pegged at $6.96 per share, implying a decline of 3.9% from the year-ago quarter’s actual.
For Ulta Beauty’s quarterly revenues, the consensus mark is pegged at $3.1 billion, which indicates an increase of 8.2% from the year-ago quarter’s reported figure. ULTA delivered a trailing four-quarter earnings surprise of 10.9%, on average.
Dollar General DG has an Earnings ESP of +1.23% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for revenues is pegged at $10.8 billion, implying 4.7% growth from the year-ago quarter’s actual.
The consensus estimate for Dollar General earnings is pegged at $1.90 per share, implying 6.7% growth from the year-ago quarter’s reported number. DG delivered a trailing four-quarter earnings surprise of 24.8%, on average.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tractor Supply to Report Q1 Earnings: Is It Time to Build a Position?

Costco Wholesale Corporation’s COST March sales update offers a fresh perspective on the retail giant’s momentum. As a dominant force in the warehouse club segment with a consistent history of growth, Costco has been investors' favorite stock. Yet, the latest sales figures raise an important question: Is now the right time to buy, hold or book profits on Costco stock?
The March report showed solid comparable sales growth across regions and an acceleration in e-commerce, strengthening the narrative that Costco’s operational execution and customer loyalty remain intact despite a challenging retail backdrop.
Decoding Costco’s March Sales Report
Costco’s membership-driven model remains a core strength, with high renewal rates ensuring a dependable revenue stream. Its efficient supply chain and bulk purchasing power enable competitive pricing, reinforcing its strong market position. This combination of customer loyalty and operational efficiency continues to give Costco an advantage in a competitive retail landscape.
For the five weeks ended April 5, 2026, Costco reported a 9.4% year-over-year increase in total comparable sales. Regionally, comparable sales rose 8.7% in the United States, 10.7% in Canada and 11.9% in Other International markets. Digitally enabled comparable sales in March surged 23.3%. (Read: Costco's Comparable Sales Stay Resilient Despite Calendar Headwind)
As a result, Costco's net sales for March rose 11.3% to $28.41 billion, up from $25.51 billion in the same period last year. This follows a sales improvement of 9.5% in February and 9.3% in January.
A Sneak Peek Into Costco’s Tailwinds
Costco continues to demonstrate the strength of its membership-driven model, which underpins a stable and recurring revenue base. The annual fee structure not only ensures predictable income but also reinforces a sense of exclusivity and value for members. This dynamic was evident in the second quarter of fiscal 2026 when membership fee income advanced 13.6% year over year, supported by robust renewal rates of 92.1% in the United States and Canada and 89.7% globally, highlighting strong customer engagement.
The company’s focus on value remains central to its competitive positioning. By offering high-quality merchandise at prices lower than its peers, Costco reinforces customer loyalty and encourages frequent store visits. Its curated merchandising strategy, featuring a dynamic assortment of essentials, seasonal goods and unique offerings, keeps the shopping experience engaging while driving incremental purchases.
Private label expansion remains a key differentiator, with the Kirkland Signature brand playing an important role in driving both customer loyalty and margin efficiency. Known for delivering premium quality at compelling price points, Kirkland enhances Costco’s value proposition. The ongoing addition of new products across categories further strengthens brand equity and supports profitability. Costco launched about 30 new Kirkland items in the second quarter.
At the same time, Costco is leveraging technology to enhance the overall member experience and operational efficiency. Investments in digital capabilities are yielding tangible results, with online sales benefiting from strong traffic growth across both the website and mobile app. Enhancements such as mobile payment solutions, pharmacy pre-payment options and in-store automation initiatives are streamlining the shopping and complementing the company’s integrated omnichannel approach.
Costco’s growth trajectory remains supported by a disciplined expansion strategy. The company continues to add new warehouse locations in high-potential markets while maintaining a measured pace that supports productivity and returns. For fiscal 2026, the company expects to open 28 net new warehouses and is targeting 30-plus warehouse openings annually over the longer term. With plans to accelerate new openings in the coming years, this steady expansion, combined with strong membership growth, positions Costco well to sustain long-term revenue and earnings momentum.
Costco Navigates a Competitive Landscape as Peers Scale Up
Costco's impressive sales figures are part of a larger retail picture where competition is intensifying. Rivals like Ross Stores, Inc. ROST, Dollar General Corporation DG and Target Corporation TGT are investing in expanding their product assortments, enhancing supply-chain efficiency, and upgrading in-store and digital experiences to capture greater market share. These retailers are also sharpening their value propositions through competitive pricing, private-label expansion and targeted promotional strategies.
Margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the selling, general and administrative rate. Foreign exchange volatility and potential tariffs on key imports create uncertainty.
Does Costco Tick the Boxes for Value Investing?
Costco stock has gained 2.5% over the past three months compared with the industry’s rise of 3.2%. A sneak peek into key retail peers' performance reveals that shares of Dollar General have fallen 21.4% during the said time frame, while Ross Stores and Target have climbed 14% and 6.1%, respectively.
Image Source: Zacks Investment Research
The stock is trading at a significant premium to its peers. Costco's forward 12-month price-to-earnings ratio stands at 45.48, higher than the industry’s ratio of 32.78 and the S&P 500's 21.29. Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 14.49), Ross Stores (29.78) and Dollar General (16.07).
Image Source: Zacks Investment Research
Costco continues to trade at a notable premium to its peers, reflecting investor confidence in its strong brand image, loyal membership base and long-term growth potential.
How Consensus Estimates Stack Up for Costco
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8.4% and 13%, respectively. For the next fiscal year, the consensus estimate indicates a 7.3% rise in sales and 9.9% growth in earnings.
Image Source: Zacks Investment Research
How to Play Costco: Buy, Hold or Sell?
Costco’s March sales performance reinforces its core strengths — resilient demand, a highly loyal membership base, and strong execution across both physical and digital channels — indicating that the company’s long-term growth story remains intact despite a competitive and uncertain retail environment. However, the stock’s premium valuation suggests that much of this strength is already reflected in its price, leaving limited room for near-term upside. Existing investors should hold the stock, as the business fundamentals remain solid and are worth staying invested. For potential investors, it may be prudent to wait for more attractive entry points rather than chasing the stock at elevated levels, while those seeking to lock in gains could consider partial profit-booking without fully exiting a fundamentally strong name.
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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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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Is Costco Stock a Buy Now After Strong March Retail Sales?

Key Points
Realty Income has essential retailers as its main clients and high occupancy rates.
Walmart's discount prices attract shoppers even when times are rough.
Coca-Cola has one of the longest histories as a Dividend King.
The S&P 500 (SNPINDEX: ^GSPC) has recovered most of its losses from this year and is roughly flat year to date as of this writing. However, it's correlating with what's happening with the war in Iran, and if the ceasefire doesn't hold or there's continued volatility in oil prices, it could plunge again.
Successful investing means holding on through challenging times and changing markets. Part of that is owning excellent dividend stocks that protect your portfolio when things get rough. If you need some protection, I recommend Realty Income (NYSE: O), Walmart (NASDAQ: WMT), and Coca-Cola (NYSE: KO).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Realty Income
Realty Income is a real estate investment trust (REIT), a type of structure where the company pays out 90% of its earnings as dividends. That's why many dividend investors have a few REITs in their portfolios. Realty Income is one of the largest REITs in the world, and it's focused on essential retail, although it has diversified into some other industries.
Essential retail is an important part of its model, since its tenants are predominantly large chain stores that can reliably pay their rent and withstand changing economies. Its top tenants by size are 7-Eleven, Dollar General, and Walgreens, and grocers make up 11% of its renter base. Its typical lease agreement is long term, which implies committed revenue for several years, and it sports a 98.9% occupancy rate. That's why Realty Income stock offers resilience and protection during recessions and other difficult times.
Realty Income grows in two main ways: acquiring other REITs and buying more properties. It had $121 billion in sourced volume last year, of which it acquired 5%, which means it consistently has ways to ensure dividend growth.
Realty Income has a specific perk that most dividend stocks can't match: It pays a monthly dividend, and it has done so for more than 55 years without missing a month. It has raised the dividend quarterly for the past 114 quarters, and the dividend yields a high 5.1%.
2. Walmart
Walmart's more than 5,000 U.S. discount stores reach 90% of the population, and it's always finding ways to open new stores, improve its systems, and innovate across its platforms. Recently, e-commerce has been an important growth driver, up 24% year over year in the 2026 fiscal fourth quarter (ended Jan. 31). One way it has an edge in e-commerce is through using its vast store base as a fulfillment network.
in addition to its U.S. operations, Walmart has a massive global presence with nearly 11,000 stores plus e-commerce, providing diversification and new opportunities.
Walmart's strength and stability, as well as its consistent growth, make it an excellent anchor stock to own at any time, and even more so when there's market chaos. That's why even though it's not your typical young growth stock, Walmart stock has trounced the S&P 500 over the past five years, up 190% versus 78% for the broader index.
Walmart is a Dividend King, or a company that has raised its dividend for at least 50 years, and it has raised its dividend through thick and thin for the past 53 years. That's a dividend you can count on whether there's a bull or bear market or in any kind of economy.
3. Coca-Cola
Coca-Cola is the world's largest beverage company, and it's been in operation for more than a century. It has a well-established model of acquiring new brands that add growth to the business, and incorporating them into its global distribution system improves profitability.
However, its eponymous Coca-Cola-branded drinks do most of the heavy lifting for the company, and loyal fans continue to buy these cheap luxuries through all kinds of circumstances. Sales increased 5% year over year in the 2025 fourth quarter.
Coca-Cola is also a Dividend King, and it has one of the longest histories of raising its dividend at 64 years. That's why investors feel they can count on Coca-Cola to provide passive income, even when the company's payout ratio has surpassed 100%. That's real commitment.
That's why Coca-Cola stock inevitably does well when the market is experiencing upheaval. It's up 12% this year while the S&P 500 is roughly flat. Coca-Cola's dividend typically yields around 3%, but it's only at 2.7% at its recent price because the stock has performed so well.
If you're looking for a forever stock that can shield your portfolio when things get ugly, Coca-Cola is an excellent candidate.
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 $556,335!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,160,572!*
Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 193% 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.
*Stock Advisor returns as of April 14, 2026.
Jennifer Saibil has positions in Walmart. The Motley Fool has positions in and recommends Realty Income and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

My 3 Favorite Dividend Stocks to Own When the Market Gets Ugly

Dollar General Corporation’s DG continued push into retail media is gaining traction, with the company announcing a partnership with QSIC to launch an AI-enabled in-store audio network. The initiative underscores Dollar General’s focus on enhancing customer engagement while unlocking high-margin advertising revenue streams.
As part of the rollout, Dollar General plans to deploy the upgraded audio network across 6,000 stores in 48 states. The move is set to double the retailer's existing audio footprint to 12,000 stores by the second quarter of fiscal 2026. Management views the rollout as a strategic enhancement to its DG Media Network, enabling brands to engage customers through localized and context-aware messaging.
Broader In-Store Reach Supports DG’s Engagement Growth
The AI-powered platform is designed to deliver localized, real-time messaging tailored to customer preferences and store-level dynamics. By leveraging first-party data and advanced analytics, it aims to improve ad relevance while enhancing the overall in-store shopping experience.
The partnership also strengthens its retail media capabilities by offering advertisers measurable, data-driven insights. QSIC’s technology integrates point-of-sale data, curated music and AI-generated ads, while providing closed-loop reporting and verified ad delivery.
The platform is designed to exceed Interactive Advertising Bureau (“IAB”) standards, enabling brands to better assess campaign performance and incremental impacts. Management also noted that nearly 85% of retail sales continue to occur in-store, reinforcing the value of physical locations as a powerful media channel.
The company’s dense footprint remains a key advantage. With more than 20,000 stores nationwide and nearly 75% of the U.S. population living within five miles of a location, DG is well-positioned to reach customers at scale, particularly in rural and underserved markets. These areas often lack alternative retail options, making Dollar General a primary shopping destination, and, by extension, a compelling channel for brands seeking to influence purchasing decisions at the point of sale.
Overall, the expansion underscores Dollar General’s focus on scaling its high-margin retail media segment while elevating the in-store experience. The initiative is expected to drive incremental advertising revenues and strengthen brand partnerships, supporting the company’s broader long-term digital and customer engagement strategy.
Here’s What Latest Metrics Say About Dollar General
The DG stock has gained 37.6% in the past year compared with the industry’s growth of 16.9%.
Image Source: Zacks Investment Research
Dollar General’s forward 12-month price-to-earnings ratio of 16.07 reflects a lower valuation than the industry’s average of 32.78.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DG’s fiscal 2026 earnings implies year-over-year growth of 6.3%, while the same for fiscal 2027 indicates growth of 9.8%. Earnings estimates for fiscal 2026 and 2027 have been upbound by 8 cents and 9 cents per share, respectively, in the past 30 days.
Image Source: Zacks Investment Research
Dollar General currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the retail space are FIGS Inc. FIGS, Ross Stores Inc. ROST and Abercrombie & Fitch Co. ANF.
FIGS is a direct-to-consumer healthcare apparel and lifestyle brand, and it currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year sales and earnings indicates growth of 11.7% and 15.8%, respectively, from the year-ago reported numbers. The company delivered a trailing four-quarter earnings surprise of 187.5%, on average.
Ross Stores operates as an off-price retailer of apparel and home accessories. It presently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales implies growth of 10.1% and 6.3%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 6.2%.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales implies growth of 8.6% and 4.3%, respectively, from the year-ago actuals. ANF delivered a trailing four-quarter average earnings surprise of 8.4%.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dollar General Corporation

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