Should I buy Dollar General stock in 2025 from the UAE?

What is Dollar General?

How much is the Dollar General stock?

The price of Dollar General stock is rising this week. As of now, the current stock price stands at $97.07, reflecting a -0.72% change over the past 24 hours and a strong +4.01% gain over the week.

The five-year beta of 0.28 indicates relatively low volatility. This stability may make Dollar General an appealing option for investors in the UAE looking for defensive stocks with modest growth and income potential.

Our full analysis on the Dollar General stock

Having thoroughly reviewed Dollar General’s latest financial results along with its stock performance over the past three years, our analysis synthesizes key financial indicators, technical signals, market context, and peer comparisons—blended through proprietary analytics—to deliver a holistic view of the investment case. With a disciplined, data-driven methodology, we examine how Dollar General’s value proposition, operating strengths, and strategic initiatives could shape the stock’s future trajectory. So, why might Dollar General stock once again become a compelling entry point into the US consumer defensive sector in 2025?

Recent Performance and Market Context

Dollar General (NYSE: DG) has exhibited notable stock resilience and resurgence, with its current price of $97.07 reflecting a robust 25.62% rally over the last six months. While the one-year decline of -30.31% may catch the eye, recent momentum tells a different story, marked by a swift 4.01% advance in the past week alone. This year-over-year correction has recalibrated valuation multiples and revived investor focus on the company’s underlying fundamentals.

Positive catalysts have re-emerged throughout 2025. The company published encouraging Q4 2024 results in March, with revenue growth outpacing market forecasts—an increase of 4.5% year-on-year versus consensus. Leadership changes, such as the appointment of Tracey Herrmann as EVP of Store Operations, have brought renewed operational focus. Dollar General’s strategic expansion into underserved rural markets and its initiatives in fresh and perishable product assortment continue to position the brand for outsized capture of U.S. consumer spending, even as macroeconomic headwinds begin to ease.

The macro context remains favorable for consumer defensive stocks in general. Sticky inflation and lingering interest rate headwinds drive value-oriented consumers toward discount retailers, strengthening Dollar General’s market relevance. In an environment of sector volatility, Dollar General stands out for its defensiveness, low historical beta (0.28 over five years), and predictable cash flows.

Technical Analysis

A close technical inspection underscores Dollar General’s entrance into a reinvigorated uptrend:

• Relative Strength Index (RSI, 14 days): At 66.64, Dollar General’s RSI is approaching overbought territory, but remains in a neutral zone—often interpreted as a sign of stable, undramatic upward momentum.
• MACD: While the MACD at 2.80 has triggered a short-term sell signal, this appears to be a pause within a broader bullish structure set up by preceding positive divergences.
• Moving Averages: Short and medium-term moving averages have produced consistent bullish crossovers in recent weeks, reinforcing underlying support.
• Key Levels: Strong technical supports are established in the $86.02-$87.59 range, providing a robust floor. The next technical challenge is the $100.12 resistance, aligned with the short-term moving average.

The technical narrative is therefore one of consolidating an up-move off cyclical lows, with structure and breadth confirming that the stock is stabilizing and primed for a potential new bullish phase. The upward sloping price channel, robust support near $87, and improving short- to medium-term momentum elevate Dollar General as a candidate for timely accumulation.

Fundamental Analysis

Dollar General’s fundamentals remain a bedrock of investment appeal:

• Revenue and Profitability: Fiscal year 2024 delivered $40.61 billion in revenues (a 5% annual increase) and Q4 top-line of $10.3 billion—both modestly surpassing analyst projections. While Q4 net income of $191.2 million reflected exceptional charges (down 52.4% year-on-year), underlying operational trends remain steady, with Q4 EPS at $5.11.
• Valuation: At a Price/Earnings ratio of 19.00, DG trades at a significant discount to historical averages for the US consumer defensive sector, while also boasting a Price/Sales of 0.53 and Price/Book of 2.88—metrics that suggest the stock is attractively valued relative to both peers and its own recent past.
• Return on Equity (ROE): An impressive 15.89% ROE signals ongoing capital efficiency.
• Dividend Yield: Current dividend yield stands at 2.43%, enhancing total returns and signaling management confidence.
• Strategic Strength: Dollar General commands a near-monopoly in thousands of underserved US towns, with more than 20,000 locations. Its business model continues to resonate with price-sensitive consumers, buffering it from sectoral shocks.

In a competitive space with over 37,000 discount stores in the US, Dollar General’s combination of scale, operational resilience, and geographic strategy (rural expansion) grants it a moat that remains difficult to breach. The brand’s recognition and its adaptability to shifting consumer needs reinforce its durable profile.

Volume and Liquidity

Market confidence in Dollar General is clearly reflected in liquidity metrics:

• Average Daily Volume: Trading activity averages 4.45 million shares over the past three months, confirming strong and recurring investor interest.
• Market Capitalization: At $21.35 billion, DG maintains a float conducive to dynamic price discovery, ensuring ample liquidity for both institutional and sophisticated retail investors.

Higher volumes typically serve as a vote of confidence during valuation troughs, and the current level of market participation can provide additional support to any nascent rally.

Catalysts and Positive Outlook

Looking ahead, Dollar General’s growth path is paved with multiple, identifiable catalysts:

• Expansion: The company is aggressively adding stores in underpenetrated rural markets, leveraging demographic trends that favor discount retail while minimizing saturation risks.
• Product Innovation: The ongoing rollout of fresh and perishable categories is expanding Dollar General’s wallet share per customer, making each store more competitive and more resilient to Amazon/Walmart incursions.
• Operational Efficiency: Advanced supply chain initiatives and process automation are underway, expected to drive margin enhancement and reduce cost exposure over the coming quarters.
• ESG and Social Relevance: Dollar General’s positioning in rural, often economically deprived communities, aligns with social responsibility frameworks—potentially attracting ESG-mandated capital.
• Sector Tailwinds: As macro headwinds diminish and consumer sentiment stabilizes, the discount retail model appears poised for a resurgence, with analysts projecting 4-5% annual sales growth for Dollar General through 2026.

The consensus analyst price target stands at $95.68, with high-end estimates reaching $120.00 and a calculated fair value of $126.19 (representing a potential upside of over 30% from current levels). In this context, the risk/reward trade-off appears increasingly asymmetric to the upside.

Investment Strategies

Dollar General’s current setup is favorable for a variety of investment horizons and strategies:

• Short-Term:
• Potential for Tactical Bounces: The consolidation just below the $100 technical resistance, paired with robust support near $87, sets up a favorable risk-reward for tactical positioning ahead of upcoming earnings and macro data releases.
• Momentum Traders: May capitalize on high volume and positive price action as technicals confirm a change in trend.
• Medium-Term:
• Ahead of Catalysts: Investors could consider building positions to capture the impact of ongoing operational and geographic expansion, as well as upcoming efficiencies from supply chain optimization.
• Long-Term:
• Value and Dividend Growth: Dollar General’s stable cash flows, defensive business model, and steadily growing dividend make it attractive for income and value investors seeking exposure to non-cyclical US consumption.
• Structural Sector Exposure: Particularly suited for portfolios requiring US consumer defensives with a technology-enabled, innovative edge.

In all cases, positioning at or near the current technical low significantly enhances risk/reward, especially as macro and company-specific catalysts unfold over the next several quarters.

Is it the Right Time to Buy Dollar General?

Dollar General currently stands at a crossroads where technical, fundamental, and strategic indicators are aligned in rare confluence. The company offers:

• Attractive valuation metrics after a major correction
• Visible top-line growth and operational improvements
• Strong cash flows and a robust dividend yield
• A resilient, dominant business model with consistent expansion opportunities
• Powerful technical support levels reinforcing downside protection

The combination of these factors suggests that Dollar General may be entering a new bullish phase, justified by solid fundamentals and multiple near-term catalysts. For investors seeking exposure to the US consumer defensive sector, Dollar General stock seems to represent an excellent opportunity to participate in a likely recovery and multi-year growth trajectory.

Dollar General’s ability to navigate a challenging environment and rediscover growth underlines its status as a core holding candidate—a stock that merits renewed attention from investors focused on both stability and upside potential in 2025 and beyond. As market conditions continue to favor resilient, consumer-focused names, Dollar General’s unique market position and momentum may well reward those who recognize the current entry point as a strategic inflection moment.

How to buy Dollar General stock in the UAE?

Buying Dollar General shares online is both straightforward and secure, thanks to the regulation and investor protections in place with reputable brokers serving clients in the UAE. Investors typically have two main ways to gain exposure: classic spot (cash) share purchases, and trading via Contracts for Difference (CFDs). Each method suits different investor profiles, with spot buying giving you direct ownership, while CFDs offer leveraged exposure and trading flexibility. To make the best choice for your needs and to compare the best brokers in the UAE, a detailed comparator is available further down the page.

Spot Buying

A cash (or spot) purchase means you buy actual Dollar General (NYCE: DG) shares in your trading account. You become a direct shareholder, benefiting from any dividends and voting rights that come with ownership. Most brokers in the UAE charge a fixed commission for each order—typically between AED 18 to AED 25 per US equity trade.

Example

The current Dollar General share price is about $97.07 (around AED 356). With a $1,000 stake (approx. AED 3,670), and after an average commission of $5 (about AED 18), you can buy roughly 10 shares:
$1,000 ÷ $97.07 = ~10.3, minus fees, so you purchase 10 shares.

Gain scenario

If the Dollar General share price climbs by 10%, your holding is now worth $1,100 (AED 4,037).
Result: +$100 gross gain, which is a +10% return on your invested amount.

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on Dollar General's price evolution without owning the underlying shares. With CFDs, brokers charge a spread (the difference between the buy/sell price) and, if you hold overnight, a daily financing fee. CFDs also let you use leverage, requiring only a fraction of the total exposure as margin.

Example

Suppose you open a CFD trade on Dollar General with $1,000 (AED 3,670) and use 5x leverage, giving you exposure to $5,000 (AED 18,350) worth of shares.

Gain scenario

If the share price increases by 8%, your position grows by 8% × 5 = 40%.
Result: That’s a $400 gain (AED 1,468) on your $1,000 investment—excluding fees such as the spread and overnight financing.

Final Advice

Before you start, it’s essential to compare not only fees but also the platforms, trading conditions, and investor protections offered by different brokers serving UAE residents. The right method—spot or CFD—depends on your financial goals, risk appetite, and investment horizon. For a full broker comparison tailored for UAE investors, see the comparator further down the page.

Our 7 tips for buying Dollar General stock

The latest news about Dollar General

Dollar General’s stock outperformed with a 4.01% gain over the last week, signaling renewed investor confidence. This advance, outpacing many peers in the discount retail sector, appears underpinned by the company’s better-than-expected Q4 2024 revenue results and a general market rotation towards consumer defensive stocks. For financial professionals in the UAE, this performance is significant as it reflects resilience despite global economic challenges, supporting diversification of international portfolios with stable US consumer plays.

The recent quarterly results posted a 4.5% increase in Q4 2024 revenue, outpacing analyst forecasts. Actual revenue reached $10.3 billion versus the expected $10.26 billion, while annual turnover climbed 5% year-on-year. Despite pressures on net income, the company’s top-line growth highlights robust demand, especially in rural markets—demographics often mirrored in parts of the MENA region, offering lessons and comparables for consumer retail strategies in the UAE.

Dollar General’s technical signals recently turned bullish, with moving averages showing upward crossover patterns. Despite a neutral momentum RSI (66.64) and a MACD still in sell territory, the short-term moving averages point to a positive swing, reinforcing sentiment for short- to medium-term investors. For UAE-based analysts, these technical confirmations suggest potential entry points for international exposure to the US discount retail sector, which may be attractive for diversified investment mandates.

A stable dividend yield of 2.43% and a defensive business model enhance Dollar General’s appeal for income-focused investors. With a relatively low beta of 0.28 and consistent dividend payouts, DG offers a buffer against volatility, an advantage for sovereign funds, institutional investors, and private clients in the UAE seeking steady US dollar income and defensive positioning amidst global macroeconomic uncertainty.

The stock’s US listing, international ISIN (US2566771059), and explicit eligibility for IRAs and global investors facilitate straightforward access for UAE-based funds and wealth clients. Dividend withholding tax for UAE residents can be managed under the US-UAE tax treaty, and capital gains are taxed locally, making Dollar General administratively simple for portfolio inclusion. These features, combined with its resilient operating model and US market dominance, make DG a practical target for international allocation and portfolio optimization strategies from the GCC region.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.