dollarama

Why I love the Dollarama stock (DOL)

Disclosure: My wife owns Dollarama in her TFSA account.

According to a recent financial report, first quarter profits rose 14.9 per cent to $398.0 million in the first quarter this year, up from $346.3 million during the first quarter last year.

In 2009, the retailer made the move to add items costing up to $2, a move well received by consumers that now Dollarama is set to add $2.50 and $3 merchandise starting in August 2012.

We purchased the stock at $43 last fall and although it pays dividends at 0.7% this number will keep going up. The chain still needs more stores to keep in line with US dollar stores per 100,000 people ratio. They are the largest player in this market and I hate retail businesses but this is a business I personally shop at and see how busy they are.

As a customer and investor I am excited, this means that our dollar stores are starting to get more higher-margin items and better selection.

I can finally find a cheap soccer ball for the beach now!

Any dollar store investors out there?

 

One thought on “Why I love the Dollarama stock (DOL)”

  1. Sounds like a good stock to have with that recent move. I know the Dollarama around here is always very busy the times I’ve gone there. One of the locations is even 2 floors. A different dollar store around here also changed their name to everything over $1 or something like that. So I guess it will be a trend with most dollar stores.

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