This S&P 500 Dividend Stock Is Down 71%, but Could Soar in 2025

Retail companies have been through the gauntlet. The pandemic, rising inflation, and the shift of consumer spending to travel and other services have pressured the stock performance of many retail companies. The SPDR S&P Retail ETF has declined 9.6% over the past three years, underperforming the S&P 500's 26% return. However, when an industry has underperformed to this extent, lower valuations can set the stage for better returns.Slowing sales at Dollar General (NYSE: DG) has sent its stock down, but after falling 71% from its 2022 highs, it might be one of the most undervalued retail stocks right now. The company has continued to pay quarterly dividends, which has brought its yield up to an all-time high of 3.2% as of January 7. This is nearly triple the S&P 500 average yield of 1.2%.Wall Street analysts are concerned about near-term consumer spending trends and competition with big-box retailers. However, Dollar General is still reporting positive same-store sales, and its Back to Basics strategy could lead to better earnings growth. The stock could be a bargain as management executes its turnaround plan in the new year.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool