Dollar General Corp. (DG), Family Dollar Stores, Inc. (FDO): Continued Hardship Benefits This Retail Pair

Don’t Count the Giant Out

For investors looking for an expanding retail concept in the domestic market, Dollar General and Family Dollar both look like decent options, with the latter even offering a yield around 1.5% That said, although both have come down from recent peaks, their shares are trading near all-time highs. They are most appropriate for momentum and growth investors.

For investors seeking broader retail exposure, however, Wal-Mart remains a solid option. While its domestic business has been struggling, its international business has been picking up the slack. That’s a key issue since growth is more likely to come from foreign markets than the company’s mature home market.

Wal-Mart shares offer an around 2.4% dividend yield and look to have finally broken out of an over decade-long trading range. They are appropriate for more conservative investors looking for a slow but steady grower.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Continued Hardship Benefits This Retail Pair originally appeared on Fool.com and is written by Reuben Brewer.

Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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