Latest news with #DollarTree
CBS News
a day ago
- CBS News
Credit card skimmer found at dollar stores in Wilkins Township
In Wilkins Township, a credit card skimmer was discovered at a place meant to save shoppers money. Employees told KDKA-TV a false keypad was removed from a point-of-sale machine inside the Dollar Tree on William Penn Highway. A photo also shows the skimmer inside the Family Dollar next door. People who work at both locations say it was found at the Dollar Tree on Friday morning. "I think it's horrible in these times; the economy is bad, people are struggling, and then you're stealing from them," said customer Clifford Howard. "I just pay cash." That's because a month ago, Howard was scammed, and his bank information was stolen. "Matter of fact, I pay in cash everywhere. I'm just playing it safe." Howard continued. "Some places don't take cash anymore, so what I do is I tap and when it says to enter your PIN, I hit decline." It's unclear when the skimmer was attached, who committed the act, and how much of the customers' information may have been compromised. "Could be an inside job, could be they don't know what's going on, but today's world," said Richard Granger. Store employees say the matter is under investigation by corporate. Customers want whoever did this to be held accountable. "I hope you end up in jail," said Granger. "I hope you get caught," Howard added.
Yahoo
2 days ago
- Business
- Yahoo
Is Dollar Tree a Buy, Sell, or Hold in 2025?
Shares of Dollar Tree have rallied amid solid sales trends at the start of 2025. The company is selling off its struggling Family Dollar brand as part of a broader restructuring effort. An improving earnings growth outlook could be key for the stock to keep climbing. 10 stocks we like better than Dollar Tree › Dollar Tree (NASDAQ: DLTR) is making a lot of cents for its investors. The discount retailer is emerging as a compelling comeback story following a disappointing period in 2023 and 2024. Steady demand from bargain-hunting shoppers, alongside ongoing operating efficiency efforts, has driven an improved company outlook. Not surprisingly, the stock is up an impressive 30% year to date. The headline numbers are encouraging, but are they enough to sustain the stock price rally? More importantly, what should an investor do at this point? Let's examine whether shares of Dollar Tree are a buy, sell, or hold now. Dollar Tree stands out with a simple, value-driven business model in a crowded retail landscape where consumers have countless options. The company offers a large assortment of products, including household essentials, snacks, and seasonal items, nearly all priced at $1.25. This focus on low-cost convenience has attracted a loyal customer base, with the company now boasting more than 9,000 stores in the United States and Canada. However, its Family Dollar brand had been struggling with a broader merchandising approach featuring apparel and higher-priced items, dragging down companywide sales and profitability in recent years. In response, Dollar Tree announced the sale of its Family Dollar chain for $1 billion to a private equity group, with the deal expected to close in the coming months. The transaction comes at an ideal time amid uncertainties from proposed U.S. trade policy changes, providing the company with a significant cash infusion while streamlining core operations. Dollar Tree estimates that tariffs on imported goods from countries like China and Mexico could add $20 million in monthly costs. Fortunately, solid sales trends are helping mitigate short-term earnings pressure. In the first quarter (ended March 31), net revenue climbed 11.6% year over year, driven by a 5.4% increase in comparable sales and 148 new store openings. Management highlighted strong performance in discretionary merchandise categories, which saw a 4.6% annual sales increase, supporting operating margins and delivering adjusted earnings per share (EPS) of $1.26, up 2.4% from the prior year. Dollar Tree expects operating momentum to continue, guiding for full-year comparable sales growth of 3% to 5%. The EPS target of $5.15 to $5.65, at the midpoint, is slightly below 2024's $5.51 due to tariff costs and Family Dollar sale expenses, yet still reflects a sustainable foundation, addressing Wall Street concerns of deeper deterioration. Investors confident that Dollar Tree is just beginning its path toward more consistent, profitable growth have compelling reasons to buy or hold the stock for the long term. The stock's valuation also looks attractive, trading at a forward price-to-earnings (P/E) ratio of 18 -- well below the average of closer to 25 from 2020 through 2023 under more normalized conditions. By this measure, Dollar Tree stock could still be undervalued, even after its latest price surge. Selling off the unprofitable Family Dollar brand appears to have been a necessary strategic step for Dollar Tree, but the long-term success of the company's restructured profile remains far from certain. Dollar Tree faces intense competition in the discount retail space from larger rivals such as Dollar General and Walmart, all vying to capture increasing wallet share from budget-conscious consumers. Without a major digital strategy, Dollar Tree could fall further behind as e-commerce plays an increasingly important role in the convenience segment. Economic uncertainties also loom large. Should the trade war escalate, or U.S. unemployment rise sharply, Dollar Tree would face major headwinds against sales estimates, forcing a reset of expectations and possibly driving down the stock price. Investors who believe Dollar Tree will gradually lose market share and struggle to expand earnings may consider selling the stock or avoiding it for now. Dollar Tree as an investment isn't perfect, but I'm optimistic the company has planted the roots for a brighter future. The business should benefit from further evidence of comparable-sales growth over the next few quarters, with the bullish case centered on the potential for earnings to exceed expectations. Don't expect the stock to climb in a straight line higher, but I predict Dollar Tree will reward shareholders willing to stomach near-term volatility. Before you buy stock in Dollar Tree, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dollar Tree 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 $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy. Is Dollar Tree a Buy, Sell, or Hold in 2025? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
4 days ago
- Business
- Business Insider
Evercore ISI Reaffirms Their Hold Rating on Dollar Tree (DLTR)
In a report released yesterday, Michael Montani from Evercore ISI maintained a Hold rating on Dollar Tree (DLTR – Research Report), with a price target of $92.00. The company's shares closed yesterday at $98.35. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Montani is a 3-star analyst with an average return of 4.8% and a 59.70% success rate. Montani covers the Consumer Cyclical sector, focusing on stocks such as Dollar Tree, CarMax, and Casey's General. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Dollar Tree with a $94.16 average price target, which is a -4.26% downside from current levels. In a report released on June 10, Bernstein also assigned a Hold rating to the stock with a $86.00 price target. Based on Dollar Tree's latest earnings release for the quarter ending May 3, the company reported a quarterly revenue of $4.64 billion and a net profit of $343.4 million. In comparison, last year the company earned a revenue of $7.63 billion and had a net profit of $300.1 million Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DLTR in relation to earlier this year. Earlier this month, Richard L McNeely, the CMO – Dollar Tree of DLTR sold 21,026.00 shares for a total of $1,989,480.12.
Yahoo
5 days ago
- Business
- Yahoo
What Bonds, Dollar Stores Say About the Economy
In this podcast, Motley Fool analyst Asit Sharma and host Ricky Mulvey discuss: Earnings from CrowdStrike, and the stock's recovery from the widespread outage last year. What Dollar Tree's results reveal about the American economy. Why stock investors should care about the bond market's signals. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center . When you're ready to invest, check out this top 10 list of stocks to buy . A full transcript is below. Before you buy stock in Dollar Tree, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dollar Tree 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 $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 This podcast was recorded on June 04, 2025. Ricky Mulvey: What's the bond market trying to tell you? You're listening to Motley Fool Money. I'm Ricky Mulvey joined today by Asit Sharma. Asit, thanks for being here. Asit Sharma: Ricky, I appreciate you asking me. Ricky Mulvey: Did I ask you? I just said I appreciate you being here. Asit Sharma: You sent me an invite to record with you. I appreciate that. Ricky Mulvey: That's fair enough. You're welcome. I'm glad you're here to record with me. Let's start with CrowdStrike. CrowdStrike reported after the bell yesterday. The street is reacting to their guidance, but let's look at the actual results here with this cybersecurity business. Total revenue growing to $1.1 billion. That is a 20% increase from the prior year, 97% gross retention. That's pretty good for a subscription business, and it's also rolling out more AI agents with CEO George Kurtz, saying, "We're on the cusp of the fifth Industrial Revolution with artificial general intelligence on the horizon." Let's breakdown here, Asit, what stood out to you in the results? Asit Sharma: Ricky, I like that annualized recurring revenue or ARR, as it's commonly called, is growing, and even a little bit in excess of the other metrics you mentioned, so this is up to $4.4 billion, just a solid foundation for both CrowdStrike and its Falcon platform, which is the engine of its subscription revenue. I like that number, I did like that the company continues to show this double digit growth 20% or above despite the issues it had last year, and I thought the net retention numbers, so dollar-based retention for new business, plus the one that you mentioned. Not losing that many customers. In the quarters where I was expecting maybe we could see some drift, some customers saying, I had enough of trauma last year. Let me look for some other solutions. I thought all this together came up to be a pretty positive package for shareholders. Ricky Mulvey: The main revenue driver for this business is subscription revenue, and it made $1 billion this quarter in subscription revenue. Oh, they are doing that with a 77% gross margin. That is high. Still, this company is losing money on the bottom line. What do you make of that? This company, at all time highs, fully recovered from the outages, does this deserve the same patience that an earlier Amazon did where investors shook their fist at its lack of ability to make a profit and then was a fabulous, fabulous long term investment, or is the clock ticking on profitability here? Asit Sharma: This is a great question, Ricky. I mean, this is a little bit of where my money at question if you're a shareholder, because you point out all this great revenue growth and a high gross margin. There's not a lot in the way of cost of sales to impede profit hitting the bottom line. There must be some fixed expenses out there that are squeezing, and those happen to be in the form of payroll expense. The first place I usually go look is the statement of cash flows to see maybe there's some stock-based compensation expense in there that's pulling the profit and loss statement down and that's what's happening here. This company in the last three months generated about $384 million in operating cash flow. It had $253 million. Let's round that up to $254 million of stock-based compensation. Now, to do credit to this company and to dig a little deeper, I will say that a good portion of the stock-based compensation here is going toward R&D salaries. It is comping people who are engaged in broadening out this Falcon platform. That's the module of this business. They keep adding modules as they gain new capabilities and customers keep buying them. Also in building this direct sales force that George Kurtz is very keen on having that go to market motion in place. There's not a huge amount that seems to be going, let's say, to the C suite, where the management team is just enriching itself. If that operating cash flow is strong and free cash flow is strong, you can stomach that long term. How does it compare to Amazon, though, back in the old days? Well, Amazon was building out its logistics operation. It was running its e-commerce business at a net loss, and it was trying to get to scale, so it had a reason to lose money. It knew that on a unit economics basis, it was already profitable and it was going to GAAP profitable one day, and that happened. You can see the same thing here with these SAS companies, though, Ricky, because they can keep upping the stock compensation that they give to employees. They can really drag out the day that shareholders start to see that positive net income, but here you could be patient. Clearly, the numbers show if they wanted to, they could throw profit down to the bottom line. Ricky Mulvey: It's going to be my new move. If I wanted to make a profit, I could. You talked a lot about share based comp there. What do you think shareholders should make of the $1 billion that's set aside for share repurchases? When you're doing more than 250 a quarter, you can do the algebra there, you seem to just be offsetting dilution there. Asit Sharma: I mean, great insight. I'm not sure that shareholders need to be too excited about this. This is something common that companies do when they are running. A really nice profit and have strong cash flow. But shareholders are also looking at getting diluted quarter after quarter. In some ways, this is talking about offsetting dilution, but it really depends on the run rate of the share repurchases. If they drag it out over, let's say, a couple of years, it's really not going to keep up. But what this is a signal is that management is aware that this could be a concern for shareholders. It is going to offset a little bit of that dilution with the share repurchases. Wouldn't get over excited about it, but it's a gesture. Ricky Mulvey: Then we've talked a lot about the numbers, the financial statements here. But clearly, there's a reason customers are sticking around even after that outage from about a year ago. What should listeners who aren't as familiar with the cybersecurity space? What do they know about specifically the Falcon Flex platform that was getting getting a lot of shine on the call? Asit Sharma: Flex is a way to purchase the products that this company offers. Originally, CrowdStrike was like many other software security companies in that you had to go through these really tough procurement cycles, and it was a battle between the customer and the vendor to ink out these long term agreements, a lot of grief. Then if you wanted to change something, a year later, let's say that CrowdStrike itself came up with this brand new module that would help you better offset threats out there in this very scary world we live in, well, you would have to renegotiate that whole contract. You'd have to go through another procurement cycle. What Flex brought to the table was a way that companies could pay upfront for consumption without having to get locked into specific modules and trade them out as they went along. What George Kurtz was saying on the call is that customers really like this, and it's helping them spend more. I think that's because if you have the confidence that you can switch your spend between things you're testing out, new modules that needs that arise that you weren't aware of six months ago, you're going to be more willing to commit the funds upfront and have bigger spends. You feel more comfortable with the vendor. And I'll note that some other companies have started copying this model, which is a mix of choice and a consumption based model, and it may be the future of offerings like this. I feel like we're going to see more companies adopting this innovative approach to selling modular type services. Ricky Mulvey: I think it's worth looking back on CrowdStrike from I was July, I think of last year, where they had the big outage. If you bought shares at that point, you're looking at a tidy, 50% gain and that's less than a year. I guess, any thoughts on the recovery of CrowdStrike here, and as we reflect back on this huge problem for the company, why do you think this ended up being a dark cloud that longer term investors were able to see through? Asit Sharma: I think the company did a pretty good job, Ricky, of owning up its mistakes upfront, maybe not in the first weeks, but eventually they made good with customers and there were some gestures that seemed like window dressing, again, in the early days. But over time, the way CrowdStrike responded to its customers and listened to them and tried to make amends and make sure that they undergirded their processes, those are impressive, but I want to say that they're not out of the woods yet. I mean, it's only been a few quarters, as you point out. Just fast forward a year or two years. With cybersecurity, it can be a fool me once. A fool me twice, dude. I don't care how easy it is to suspend money with you or how many new products you put in front of me that are fantastic. I'm at least going to send out my bids for another vendor or another couple of vendors in the next cycle if you're going to continually expose me to this uncertainty or shutdown or risk in my business operations. They really can't afford to make a similar mistake. I don't think they will. I think they have their act together. But with these types of things when people need that 100% uptime, and it is mission critical, and you're a cybersecurity company to boot, you really can't mess up twice in this vein and get away with it. Ricky Mulvey: After the break, we're going to take a look at Dollar Tree and what that business says about the economy, and we're going to take a closer look at the bond market. Asit, Dollar Tree reported this morning, it turns out it's a tough time to sell goods that are manufactured in China and across the world. Adjusted profit during the second quarter, the CFO announced could be down as much as 45 to 50% compared to a year ago. Actually, some impressive numbers in terms of comp sales growth and more people coming into their stores. But this is what's getting the headline here for Dollar Tree. Is this just a tariff problem, or is there more to the story here? Asit Sharma: I think it's just a tariff problem, Ricky. Like you, I saw a lot to like in the report, net sales up 11% and that same store sales growth of over 5%. That's pretty strong in this environment when most consumers are pulling back a little on their spins. I thought the traffic flows looked good. The company is finally going to sell its family dollar division. On the whole, we've got a positive story here, and I will point out that like Dollar General, we're seeing more affluent customers drop down to the dollar stores, a little bit of a Cloud, what that says about the overall economy, I'm not so sure, but I don't think it's good. But that's a good tailwind for this company. I think they're in fine shape, except for the tariffs. Here's the issue that maybe investors think about today. First place, Dollar Tree was very good about quantifying its costs visa V the tariffs, and I like that. I mean, not every company is able to forecast Ford, and the impacts don't seem to be actually that large. If you listen to what management was saying, they were saying that this is like a fraction of our overall payroll increase in a given year. It's not a huge amount of dollars that we're talking about, but take this bit of uncertainty and a drag on the profit margin with potential commodity inflation when the tariffs really start to take effect and form a fewer of those shipping containers that you and I have been talking about coming into the US, I think investors are maybe seeing beyond management's numbers and extrapolating a bit here that they could come back in the third quarter or the fourth quarter and say, we laid out a good scenario for you, but man, all the prices are rising beyond our expectations and even where we shifted goods to other venues that had lower tariff regimes, those costs are rising, too, because of supply chain problems and shipping and logistics. I think investors are just a little bit concerned of tariffs plus higher commodity costs, higher goods coming in. In this case, not true commodities, but the products that Dollar Tree resells to its customers. There's some maybe warranted caution here. Overall, though companies is doing well this quarter. Ricky Mulvey: You said that they're able to forecast. I would say willing to forecast because there is a lot that could change between now in the coming quarter. I think something that was surprising to me in this call, too, is that they were seeing a meaningful traffic increase. You mentioned from higher income consumers. People making or household incomes making more than 100 grand a year are going into Dollar Tree more. Asit that was surprising to me because, Walmart has been the winner of that in the past, but now dollar stores are starting to get more of that, as well. Management would say, this is because of Dollar Tree's broad appeal. There's some economic concerns there as well. But given all of the dark clouds that you've mentioned before, do you still think a company like Dollar Tree can win long term in this environment? Asit Sharma: Probably, Ricky. They've been along with one of their rivals Dollar General, working on the movement of inventory and gradually just pulling those costs down, and they've also, like Dollar General, been pretty good at adding stores at this tremendous cadence. It's like quick service restaurants. When you buy into a chain like Chipoly, part of the math, why earnings rise is they keep adding locations, and Dollar Tree has that going forward. It'll be a bit leaner as it disposes of family dollar. I think it can win in this environment. Do I think this is going to be the greatest investment during this period? No, but it probably is a decent defensive idea. I wouldn't look down in my nose at it for that reason. Ricky Mulvey: It's not a stock that I own, but it's an interesting finger in the wind for the economy, as I look at a business like Dollar Tree. Asit Sharma: Totally. Ricky Mulvey: Speaking of the economy, let's talk about the bond market, because on Friday's show, you said this is something you were keeping a close eye on when we were doing our big macro discussion, and especially what's going on in Japan, which has a higher, I believe, higher debt to GDP ratio than the United States. We don't really talk about stocks on this show, but why should stock investors, even people earlier in their investing journey? Why should they care about what the heck's going on in the bond market? Asit Sharma: A long time ago, the bond market used to be a very lucrative place to invest and lucrative what I mean by that is for the risk you took, you got a pretty decent return between the interest you collected on your bond investments and a little bit of appreciation on those bonds. When I was your age, Ricky, which was a little while ago, there were many investors who had a 60, 40 split, 60% of their portfolios in bonds, and 40% in stocks. Now, in today's world, most retail investors are all stocks and hardly think about the bond market, and that's fine. But there is this other world where sovereign governments need to finance their operations like the US, those that have debt in excess of GDP, which you just mentioned Japan, which we talked about, is the poster child for having a lot of money that it owes against its ability to throw off value each year in the form of gross domestic product. The United States isn't quite yet a poster child, but man, we're trying to become one. We're trying to knock Tokyo off the wall in that regard. Why this matters is capital flows need to come into the US for us to have our assets inflate on multiple fronts for our borrowings to inflate so that we can pay our bills because we operate at a deficit for the capital flows to stay in the US and help stock prices increase as companies throw off earnings and folks want to invest, we still have to attract that capital into the country from other places. Just to focus on the bond side of the equation for a moment, I'm sure so many of our listeners have heard this preliminary argument before as the US becomes less of a stable place to invest. Investors really are tempted to avoid our bonds because they're perceived not as risk free anymore, our longest dated bonds, but maybe a little bit risky. We have to offer a higher interest rate to induce them to come to the US and let us borrow money, and that has follow on effects for everything. It also makes our stock markets less attractive. Now, I think moving forward, there's other interesting phenomenon that's emerging. The Wall Street Journal was talking about that just this morning, when our currency depreciates because of trade policies, that means that foreigners who buy our bonds they are losing in two ways. One, they have higher risk, and two, they are losing on the currency differential. The value of a US denominated debt obligation decreases because the dollar decreases. You have to hedge against that risk, and that costs money, making our bonds even less attractive. If we have this scenario for an extended period of time, then what you see is not only will everything be more expensive and the US run wider deficits, and our cost for long term borrowing go up like home mortgages or buying a car, but we'll see capital outflows out of the stock market, which will then affect stock investors because money will go chase safer havens countries that are better position vis via their economies and relatively lower valuations out there versus the United States, where BigTech has made our multiples look really extended, really expensive. Capital will chase cheaper markets. We're seeing a little bit of all of this in real time, but it's very slow motion right now, Ricky and my concern is that one day this thing just becomes a little bit of a snowball where it will be hard to quickly reverse the conditions we are in now. Ricky Mulvey: Well, I think you're seeing that with the spending bill that's going through Congress right now, and it is impossible to have this discussion without mentioning the existence of politics. But this budget being proposed is estimated to add, I think, more than I've seen, like estimates between like 2.5 to like $3 trillion to the deficit. That's on top of the deficit we already had. I think there was some expectation that we're going to start to see spending get clamped down in the United States and really start addressing the national debt. At least in the current version of this spending bill, that does not appear to be the case. What bond investors do is they demand higher yields for higher risk. This is why the 30 year US Treasury is now flirting with 5% yields. It's been flirting with that I think through the start of the year. That's not something that's really been going on since 2007. When you look at that Asit as an analyst, is that a big deal concern troll, what say you? Asit Sharma: I think it's a big deal, Ricky. The thing that I can't forecast is when kicking the can down the road reaches a wall, so the can is against the wall. If you kick it any further, you're just going to hurt your toe or break your foot. I think that day is coming. I think it's on the horizon. Now whether this is five years from today, 10 years from today, nobody knows. The US has a very dynamic economy, and it can improve itself a lot more quickly for such a big economy than you might think. But I don't know how many times we can pull that trick out of the hat before you have to pay the Piper, which is to say there's only so much appetite for sovereign debt in the world. Ricky Mulvey: You hear a lot of concern about the US, but still, this is where the biggest baddest companies in the world are. There's a lot of macro geopolitical concerns, no matter where you look in the world. I mean, we can talk about the concerns within our home country, but is US debt still that TNA? There is no alternative type investment if you're looking at debt and bonds. Asit Sharma: It still holds that role, and the reason is this, there is a market for sovereign government debt that's pretty huge. It's still a fraction of ours, but it looks attractive, and that is Euro denominated debt. Now, the issue with that is when you're buying those bonds, you're looking at various countries and those markets are only so big. Together, if you add up like Germany, Italy, Spain, all these very productive economies over in Europe, yeah, that number adds up to not anywhere near our market, but it's still substantial and can attract that capital away. But bond investors then are looking at each economy. Do I really want to invest in Italy's bonds, which at the end of the day they're also trying to v for that poster child place. There are only so many German bonds that global investors are going to be able to buy. There is some constraint of size in here, and I think the US is coasting on that for now, but politicians, are you listening? I bet you're asleep by now, because you always tune out when you know this is coming. Get your act together from both sides of the aisle. This has been going on not years now, but decades. We got to do something about this to enjoy the types of returns we have in the stock market for all those little domino effects that you and I just talked about in the last 10 minutes or so. Ricky Mulvey: Politicians, Congress people specifically, if you have stock ideas that you'd like to share with the show, our email is podcasts at Let's podcast with We'll leave it there. Asit Sharma, appreciate you being here. Thank you for your time and your insight. Asit Sharma: Thanks, Ricky. Ricky Mulvey: As always, people on the program may have interests in the stocks they talk about in the Motley Fool may have formal recommendations for or against, don't buy or sell stocks based solely on what you hear. All personal finance content, follows Motley Fool editorial standards and are not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. See our Fool advertising disclosure. Please check out our show notes. I'm Ricky Mulvey. Thanks for listening. We'll be back tomorrow. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Asit Sharma has positions in Amazon and Dollar General. Ricky Mulvey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, CrowdStrike, and Walmart. The Motley Fool has a disclosure policy. What Bonds, Dollar Stores Say About the Economy was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Here's How Many Shares of Realty Income Stock You Should Own to Get $500 in Yearly Dividends
Realty Income's monthly dividend has steadily risen since 1994. Its 5.6% dividend yield and history of payout hikes should make Realty Income attractive to income investors. 10 stocks we like better than Realty Income › Realty Income (NYSE: O) has evolved into a massive cash generator for its long-term investors. Known as the "monthly dividend company," it has paid a monthly dividend and increased its payout at least once per year since it initiated such payments in 1994. Despite its gains, Realty Income's valuation and dividend yield appear well-positioned to benefit new investors. It may surprise investors how little of the stock they need to buy to generate $500 in annual dividend income. As of this month, Realty Income's dividend pays $0.2685 per share monthly to shareholders, or just over $3.22 per share annually. At today's prices, the stock's yield is just under 5.6%. This means that to generate $500 in yearly income, one needs to buy 156 shares. At approximately $57.35 per share, that requires an investment of just under $8,950. Realty Income derives revenue from just over 15,600 net lease properties. Under this arrangement, the tenant covers taxes, insurance, and maintenance costs, which stabilizes the company's cash flows. The properties are almost 99% leased and occupied by stable, well-known companies, including Home Depot, Dollar Tree, and Tractor Supply. Those business's stability and dependence on foot traffic minimize the likelihood of tenant defaults. Furthermore, investors should expect their dividend income to rise over time. Over the last year, Realty Income hiked its dividend four times. One year ago, the stock paid $0.2630 per share in dividends, meaning the payout rose by 2% during that time. Admittedly, a 2% yearly increase sounds modest. Nonetheless, rising lease rates and an expanding portfolio should continue to drive the dividend and, by extension, the stock price higher, positioning Realty Income shareholders for improving returns over time. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Will Healy has positions in Realty Income. The Motley Fool has positions in and recommends Home Depot, Realty Income, and Tractor Supply. The Motley Fool recommends the following options: short July 2025 $54 calls on Tractor Supply. The Motley Fool has a disclosure policy. Here's How Many Shares of Realty Income Stock You Should Own to Get $500 in Yearly Dividends was originally published by The Motley Fool
