Who does Dollar General belong to? As one of the largest discount retailers in the United States, no individual owns Dollar General. Instead, it is widely held by institutional investors and other individual investors who have substantial holdings in the company.
Vanguard Group, Inc., is the largest shareholder of Dollar General with 21 million shares that represent 9.89% ownership. This is slightly followed closely by BlackRock, Inc., which owns 19 million shares, that translates to 8.84% ownership. Capital International Investors ranks third with 16 million shares, equivalent to 7.47% ownership of the company.
Other notable shareholders include Capital World Investors, State Street Corporation, Also, the ownership of the firm was diversified since Price or T. Rowe Associates, Inc., Geode Capital Management, LLC, Morgan Stanley, Longview Partners, or Guernsey LTD, FMR, LLC, positioned themselves as strategic shareholders of Dollar General.
With that distributed ownership, Dollar General draws on the experience and resources from its institutional and individual investors. That collective ownership becomes the most critical element in defining the way forward and success of the company in the competitive retail business.
Top Dollar General Institutional Shareholders
All these institutional shareholders are of great importance for the ownership structure of the company since they define a company’s ability to make certain decisions significantly. Looking at Dollar General, several influential institutional investors are owning large parts of the company’s shares, which means that such shareholders believe in the company’s future. These institutional shareholders include the following:
- The Vanguard Group, Inc.
The Vanguard Group, Inc., is one of the major institutional shareholders in Dollar General and owns a significant fraction of the company. According to Yahoo Finance, as of September 2023, The Vanguard Group, Inc. has 21,711,407 shares of Dollar General. This amount shares about 9.89% ownership in outstanding shares. As per the value reported at $2.9 billion with $2,945,152,227, The Vanguard Group, Inc. has anchored this investment in Dollar General for the long-term growth potentiality and value proposition.
The Vanguard Group is a very renowned investment management firm that has been known to have one of the largest portfolios of funds and ETFs. It manages more than $7.7 trillion in managed assets across the globe. Being an investment firm with such a diversified investment strategy, the investment in Dollar General is spread over several funds and ETFs. Some of them are Vanguard Total Stock Market ETF, which holds 0.06% allocation and $935.61 million as market value by holding 6,881,038 shares.
The Vanguard 500 Index Fund has an allocation of around 0.07% in Dollar General, with a market worth of $728.52 million, holding 5.36 million shares. The Vanguard Mid-Cap Index Fund also holds a 0.43% allocation and a market worth of $668.86 million, holding 4.92 million shares.
The collection of many Dollar General shares gives The Vanguard Group enormous power over the firm’s future. As one of the most significant institutional shareholders, it has phenomenal power within Dollar General’s corporate governance systems. From this position, The Vanguard Group can find itself quickly involved with the firm in trying to source board representation and in making essential investor decisions.
- BlackRock, Inc.
BlackRock, Inc., is Dollar General’s leading institutional shareholder with 19,397,589 shares. This is about 8.84% of company ownership, reported to be valued at $2,631,282,829.
As an asset manager, BlackRock wields tremendous economic power with over $9.5 trillion under management, making it one of the most prominent investors in the world. It has constructed a core business chiefly in mutual funds and ETFs, particularly in its popular iShares ETF products. The scale of this magnitude allows BlackRock to write checks on mature companies and emerging technologies, expanding its exposure beyond traditional markets.
Probably, the strong presence of Dollar General in the retail sector and finding ways to move with shifting trends in the consumer are what raise BlackRock’s interest. In its value-oriented investments, BlackRock does that commonly through dividends or share repurchases; it encourages different businesses from various sectors whose investment needs it deems suitable.
As one of the most significant shareholders in Dollar General, BlackRock acts as a primary driver in protecting the interests of the investors. It is particularly very active in terms of developments in corporate governance, in which it makes demands for the inclusion of board members who are likely to make essential investor decisions that would determine the course of future action for the company. How BlackRock will vary the percentage stake in reaction to fluctuations in the market would be interesting to see.
- Capital International Investors
Capital International Investors is Dollar General’s institutional investor and has a large number of shares outstanding. According to the report, as of September 29, 2023, they have 16,403,419 shares account for 7.47 percent of all their outstanding shares. Capital International Investors’ stake in this company equals a dollar value of 2,225,123,687 dollars.
Along with Vanguard Group, Inc. and BlackRock, Inc., Capital International Investors is one of the world’s largest and most famous asset management companies, offering investment products to institutional clients only. This is a reliable institutional investor with its carefully diversified portfolio and commitment to reaching financial goals for every client. Capital International Investors invest in a value-oriented approach by developing investments that best fit their needs. Besides, they are looking to generate returns via strategies such as through dividends or share repurchases. They have also been open to investing in new and emerging technologies and industries-which, also represent the diversity of investment exposures.
- Capital World Investors
Capital World Investors is an institutional shareholder of Dollar General. It owns 12,934,665 shares worth about $1.7 billion. It has approximately 5.89% of the outstanding shares of the company.
Capital World Investors is a subsidiary of Capital Research and Management Company. It is one of the most renowned global investment management firms with a great legacy in this financial industry. Having over $500 billion of assets under management, Capital World Investors has always catered to delivering exceptional investment solutions to a diversified client base.
Due to its massive stake in Dollar General, Capital World Investors stands as an essential constituent in deciding the future of the latter. Such immense investment reflects great confidence in the company and its prospects.
Even though Capital World Investors have a well-balanced and distributed portfolio across various sectors, their investment in Dollar General shows that they place value on investment in the retail industry because of its vast network of stores and a business policy of reaching out to value-conscious customers as part of their sustainable competitive advantages.
- State Street Corporation
State Street Corporation is Dollar General’s central institutional shareholder with passive and active investment funds. It has invested in 9,509,810 shares of Dollar General or about 4.33 percent of the outstanding shares. This puts the total value of State Street Corporation’s stake in Dollar General at $1,290,005,668.
State Street Corporation is a global leader offering asset management and related services that include investment management, trading, custody, and consulting services in many asset classes. With this broad array of financial expertise and research-driven insights, State Street Corporation can make very informed investment decisions for companies like Dollar General.
Furthermore, the rich portfolio of exchange-traded funds that State Street Corporation has provides them with scale advantages and growing influence in the financial markets. This will help them make a long-term investment in businesses that will be rightly positioned to serve their customer interests with the optimum level of market risks and the volatility of macroeconomic variables.
Price (T. Rowe) Associates, Inc.
T. Rowe Price Associates, Inc., which has been operating as an investment management company for more than 80 years is one of the largest asset managers in the world. It is one of the largest institutional investors in terms of a number investiture funds $1.3 trillion dollars under management which has numerous investment instruments this company possesses.
It has shown keen interest in Dollar General as Price (T. Rowe) Associates, Inc. has 6,928,350 outstanding shares, which is 3.16%. This massive investment amounts to $939,830,635 in market value.
Price (T. Rowe) Associates, Inc. is a long-term investor whose investment philosophy relies on fundamental research and analysis to find companies with sound growth potential backed by financial solid fundamentals. They are very patient and disciplined in investing and devise a strategy for delivering consistent, long-term returns to their clients.
- Geode Capital Management, LLC
Dollar General’s major institutional investors are Geode Capital Management, LLC. Reports by September 2023 stated that they owned only about 1.96% of the companys outstanding shares, equal to a total of just over or around $4,305,665 voices This is valued at $584,063.00
Geode Capital Management, LLC is also an institutional shareholder of Dollar General that focuses on diversification and value-oriented investing like any other dollar store. Its stock profile is diverse which would allow it to tap the opportunities as also to control risks.
- Morgan Stanley
Morgan Stanley is one of the significant institutional shareholders of Dollar General, owns 3,793,379 as of 2023, and accounts for about 1.73 percent of outstanding shares. Morgan Stanley’s Dollar General holdings are estimated at $514,571,838 as of September 2023.
About Morgan StanleyMorgan Stanley was established in 1935 and is an global financial services company that conducts investment banking, securities, wealth management and investment managing with individuals throughout the world. operations over more than 40 countries worldwide some of them are corporations, governments as well as institutions globally. They have distinguished themselves by their ability and unique methods to provide solutions for all the financial needs of its customers. Morgan Stanley-another large institutional investor-is also a very active shareholder at DG. Additionally, it is a big shareholder and cares about performance and long-term growth of the company. Moreover, other investors present in the market may also be inspired by an investment bank expertise and insight on their return to influence investment decisions and at times it becomes a guiding tool.
History of Dollar General’s Ownership
Dollar General is among the largest retail chains in the United States specializing in discount products. As history shows, there were quite a few changes in ownership succession.
It was established in 1939 by James Luther Turner and his son, Cal Turner Sr., in Scottsville, Kentucky. They opened a store called J.L. Turner & Son Wholesale and started selling goods at wholesale prices to small-town retailers. But soon, they learned that five-and-dime stores had gained much popularity. Therefore, they also entered the retail business and launched their store in 1955 and gradually shifted their business model towards targeting the low-income consumer market.
For several years, the company continued to expand and remained a privately held family-owned business. Cal Turner Sr., in 1968, however, decided that Dollar General should be taken public. The company was listed on the New York Stock Exchange – “NYSE” under the “DG.” This allowed the company to raise capital and seek further growth opportunities.
In 2007, private equity firm Kohlberg Kravis Roberts & Co. (KKR) took Dollar General private in a leveraged buyout transaction for approximately $6.9 billion. This was when the company was going through some tough times with financial difficulties brought on by the heavy debt burden falling sales, and toughened competition within the retail space. Under KKR ownership, Dollar General went through various cost-cutting drives to get its finances in order.
Three years later, in 2009, Dollar General returned to the public market with an IPO priced at $21 a share-the, an investment step that permitted KKR to partly exit its investment and cash in its stake in the company.
Since then, Dollar General continued to prosper under public ownership, experiencing significant domestic and international expansion. As of 2023, more than 18,000 stores operate in 48 states within the United States, with revenues reaching billions each year.
Even though Dollar General has switched from being owned by a family to private equity ownership back out into public hands, the company continues to offer low-priced goods targeted at its consumer base. Dollar General has been successful all these years because of its flexibility in the dynamic market situation and awareness for fulfilling the needs of low-income customers, making it firm among leading discount retailers.
Conclusion
The Lean box owns Dollar General massively but it is highly diversified ownership structure. This company is a top holding of most institutional investors. Major institutional investors that own Banco Santander stock include Vanguard Group, Inc., BlackRock, Inc., Capital International Investors, Capital World Investors, State Street Corporation, Price (T. Rowe) Associates, Inc.
Institutional investors have a massive stake in the company overall, indicating that they are very confident about Dollar General’s potential for growth in future and its long-term performance. Such enormous institutional ownership essentially screams to the contrary – that Dollar General is very well-positioned in the retail sector and will continue thriving moving forward.
