Who owns Dollar General? A prominent discount retailer, Dollar General is not owned by a single individual. Instead, its ownership is dispersed among various institutional and individual investors, each holding significant stakes in the company.
Vanguard Group, Inc., is Dollar General‘s largest shareholder, with 21 million shares representing 9.89% ownership. BlackRock, Inc., follows closely behind, holding 19 million shares, representing 8.84% ownership. Capital International Investors, with 16 million shares and 7.47% ownership, also has a significant stake in the company.
Other notable shareholders include Capital World Investors, State Street Corporation,
Price (T. Rowe) Associates, Inc., Geode Capital Management, LLC, Morgan Stanley, Longview Partners (Guernsey) LTD, and FMR, LLC’s inclusion among Dollar General’s top shareholders further highlight the company’s diverse ownership structure.
Through this dispersed ownership, Dollar General benefits from the expertise and resources of institutional and individual investors. This collective ownership is crucial in shaping the company’s direction and success in the dynamic retail industry.
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Top Dollar General Institutional Shareholders
Institutional shareholders play a crucial role in the ownership structure of companies, often exerting significant influence on corporate decision-making. In the case of Dollar General, several prominent institutional investors hold substantial stakes in the company, underscoring their confidence in its prospects. These institutional shareholders include the following.
- The Vanguard Group, Inc.
The Vanguard Group, Inc., is a prominent institutional shareholder of Dollar General, holding a significant stake in the company. As of September 2023 (latest Yahoo Finance data), The Vanguard Group owns 21,711,407 shares of Dollar General, representing approximately 9.89% of the company’s outstanding shares. With a reported value of $2.9 billion ($2,945,152,227), The Vanguard Group’s investment in Dollar General demonstrates its confidence in its growth potential and long-term prospects.
The Vanguard Group is renowned for its extensive portfolio of funds and ETFs, managing over $7.7 trillion in assets globally. Their investment in Dollar General is distributed across various funds and ETFs, reflecting its diversified investment strategy. Notable ETFs include the Vanguard Total Stock Market ETF (VTI), with an allocation of 0.06% and a market value of $935.61 million, holding 6.88 million shares.
The Vanguard 500 Index Fund (VOO) also holds a stake in Dollar General, with an allocation of 0.07% and a market value of $728.52 million, holding 5.36 million shares. Additionally, the Vanguard Mid-Cap Index Fund (VO) has an allocation of 0.43% and a market value of $668.86 million, holding 4.92 million shares.
The Vanguard Group plays a crucial role in shaping the company’s future by accumulating a significant number of Dollar General shares. As one of the largest institutional shareholders, it possesses considerable influence within Dollar General’s corporate governance structures. This position allows The Vanguard Group to actively engage with the company, seeking board representation and participating in essential investor decisions.
- BlackRock, Inc.
BlackRock, Inc., is a prominent institutional shareholder of Dollar General, holding 19,397,589 shares. This represents approximately 8.84% company ownership with a reported value of $2,631,282,829.
As an asset management company, BlackRock controls over $9.5 trillion in assets, making it a formidable player in the investment landscape. The firm focuses primarily on mutual funds and ETFs, including its famous iShares ETF products. With such vast resources, BlackRock has the capacity to invest in both established companies and emerging technologies, diversifying its exposure away from conventional markets.
Dollar General’s significant presence in the retail industry and its ability to navigate changing consumer trends are likely vital factors attracting BlackRock’s attention. BlackRock aims to support businesses across different sectors that meet its investment requirements through its value-oriented investments, such as dividends or share repurchases.
As one of Dollar General’s largest shareholders, BlackRock is essential in safeguarding investor interests. It actively engages within corporate governance structures, seeking board representatives who can contribute to crucial investor decisions that may shape the company’s future. It will be intriguing to observe how BlackRock’s stake percentage may evolve in response to market trends.
- Capital International Investors
Capital International Investors is a significant institutional shareholder of Dollar General, owning 16,403,419 shares, representing 7.47% of the company’s outstanding shares as of September 29, 2023. With a value of $2,225,123,687, Capital International Investors holds a substantial position in the company.
Like Vanguard Group, Inc., and BlackRock, Inc., Capital International Investors is a renowned asset management company providing investment solutions to clients. They have established themselves as a trusted institutional investor with a diversified portfolio and a commitment to achieving clients’ financial objectives.
Capital International Investors takes a value-oriented approach to investments, seeking opportunities that align with their investment requirements. They aim to generate returns through strategies such as dividends or share repurchases. Additionally, they have demonstrated an openness to investing in emerging technologies and industries, indicating a willingness to diversify their investment exposure.
- Capital World Investors
Capital World Investors is one of the institutional shareholders of Dollar General, owning 12,934,665 shares ($1.7 billion). This represents approximately 5.89% of the company’s outstanding shares.
Capital World Investors, a subsidiary of Capital Research and Management Company, is a prominent global investment management firm with a long-standing legacy in the financial industry. With over $500 billion in assets under management, Capital World Investors strives to deliver exceptional investment solutions to a diverse client base.
As a significant shareholder of Dollar General, Capital World Investors plays a crucial role in shaping the company’s future. Their investment signifies a strong belief in the company’s potential and long-term growth prospects.
While Capital World Investors maintains a diversified portfolio across various sectors, their investment in Dollar General highlights the importance they attribute to the retail industry. Dollar General’s extensive network of stores and focus on serving value-conscious customers aligns with Capital World Investors’ investment philosophy of seeking out companies with sustainable competitive advantages.
- State Street Corporation
State Street Corporation is a central institutional shareholder of Dollar General, with its passively and actively managed investment funds holding a significant stake in the company. The bank holding company owns 9,509,810 shares of Dollar General, representing approximately 4.33% of the outstanding shares. The total value of State Street Corporation’s investment in Dollar General amounts to $1,290,005,668.
As a global leader in asset management and related services, State Street Corporation offers a wide range of investment management, trading, custody, and consulting services across various asset classes. With its extensive financial expertise and research-driven insights, State Street Corporation is well-positioned to make informed investment decisions in companies like Dollar General.
Moreover, State Street Corporation’s diverse portfolio of Exchange Traded Funds (ETFs) provides them with increased buying power and expanding influence within the finance industry. This enables them to secure long-term investments in companies that align with their clients’ objectives and needs, while effectively managing market risks and the volatility of macroeconomic factors.
Price (T. Rowe) Associates, Inc.
Price (T. Rowe) Associates, Inc., is a leading global asset management firm that has been in operation for over 80 years. With a diverse range of investment vehicles, the company manages over $1.3 trillion in assets, making it one of the largest institutional investors in the world.
Price (T. Rowe) Associates, Inc., has demonstrated a strong interest in Dollar General, as evidenced by its 6,928,350 shares, representing 3.16% of its outstanding shares. This investment has a market value of $939,830,635.
As a long-term investor, Price (T. Rowe) Associates, Inc., focuses on fundamental research and analysis to identify companies with solid growth potential and sound financial fundamentals. They have a reputation for taking a patient, disciplined approach to investing and are committed to generating consistent, long-term returns for their clients.
- Geode Capital Management, LLC
Geode Capital Management, LLC, is a prominent institutional shareholder of Dollar General. As of September 2023, they held a reported 4,305,665 shares, or approximately 1.96% of the company’s outstanding shares. Their holdings amount to $584,063,430.
Like other institutional shareholders of Dollar General, Geode Capital Management, LLC emphasizes diversification and value-oriented investments. Their portfolio encompasses various sectors, enabling them to effectively capture opportunities and manage risks.
- Morgan Stanley
Morgan Stanley is a prominent institutional shareholder of Dollar General, holding 3,793,379 shares, representing approximately 1.73% of the company’s outstanding shares. As of September 2023, Morgan Stanley’s holdings in Dollar General are estimated at $514,571,838.
Founded in 1935, Morgan Stanley is a global financial services firm that provides a wide range of investment banking, securities, wealth management, and investment management services to corporations, governments, institutions, and individuals worldwide. With offices in over 40 countries, Morgan Stanley has built a strong reputation for its expertise and commitment to delivering innovative financial solutions to its clients.
As an institutional shareholder, Morgan Stanley plays a significant role in Dollar General’s ownership structure. With its sizable shareholding, Morgan Stanley is interested in the company’s performance and long-term growth. The investment bank’s expertise and insights can also influence investment decisions and provide valuable guidance to other investors in the market.
History of Dollar General’s Ownership
Dollar General, one of the largest retail companies in the United States specializing in discount products, has had its fair share of ownership changes throughout its history.
The company was founded in 1939 by James Luther Turner and his son, Cal Turner Sr., in Scottsville, Kentucky. They initially named the store J.L. Turner & Son Wholesale, focusing on selling goods to small-town retailers at wholesale prices. However, noticing the increasing popularity of five-and-dime stores, they decided to open their own retail store in 1955, eventually shifting their business model to target the low-income consumer market.
For several years, the company continued to expand and operate as a privately held family business. However, in 1968, Cal Turner Sr. chose to take Dollar General public, listing the company on the New York Stock Exchange (NYSE) under the ticker symbol “DG.” This move allowed the company to raise capital and pursue further growth opportunities.
In 2007, private equity firm Kohlberg Kravis Roberts & Co. (KKR) acquired Dollar General in a leveraged buyout transaction for approximately $6.9 billion. During this period, the company faced significant financial challenges due to a heavy debt burden, declining sales, and increasing competition in the retail sector. Under KKR’s ownership, Dollar General implemented various cost-cutting measures to improve its finances.
Just three years later, in 2009, Dollar General returned to the public market with an initial public offering (IPO) priced at $21 per share. This move allowed KKR to exit its investment partially and monetize its stake in the company.
Since then, Dollar General has continued to thrive under public ownership, experiencing considerable domestic and international growth. As of 2023, the company operates over 18,000 stores across 48 states in the United States, generating billions of dollars in annual revenue.
While Dollar General’s ownership has transitioned from a family-run business to private equity ownership and back to public ownership, it maintains its commitment to providing affordable products to its customer base. The company’s ability to adapt to changing market conditions and its emphasis on meeting the needs of low-income consumers have contributed to its success over the years.
Conclusion
Dollar General has a diverse ownership structure, with several major institutional investors holding significant stakes in the company. The top shareholders as of September 2023 are Vanguard Group, Inc., BlackRock, Inc., Capital International Investors, Capital World Investors, State Street Corporation, Price (T. Rowe) Associates, Inc., Geode Capital Management, LLC, and Morgan Stanley.
These institutional investors collectively own a substantial portion of the company’s shares, indicating their confidence in Dollar General’s growth potential and long-term prospects. With such strong institutional backing, Dollar General is well-positioned for continued success in the retail industry.