Dollarama Shares: Price, Dividends and Performance
It can be interesting to bet on Dollorama as a growth stock - more than as a yield stock - considering the current analyst consensus and the various technical and fundamental signals.
How much can you make with Dollarama stock?
Get up-to-date and precise information on Dollarama stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Dollarama: Our key take-aways
Stock Exchange: TSX
- Stock Index: S&P/TSX 60
- Dividend 2021: $0.212
- Dividend forecast 2022: N/A
- 1 Year Performance: +18.48%
Should I buy Dollarama stock?
As mentioned in the introduction, Dollorama is probably not one of the better performing stocks in the Canadian stock market, as its yield is relatively low.
However, it may be interesting to invest in this stock as a growth stock given the current consensus of analysts and the various technical and fundamental signals.
A long-term investment strategy will be possible on this stock, but it is also interesting to trade it on a shorter-term basis using derivatives.
Before you buy Dollarama shares, we offer you a summary of all the information and stock market data about this stock that will help you make the right decision.
On this page you will find information about the company, its stock yield and dividend, as well as its historical performance and current signals.
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How can I buy shares in Dollarama ?
To buy Dollarama on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Dollarama to your stock portfolio.
How much are Dollarama shares?
See price chart below to follow Dollarama stock price in real time.
Why Dollarama shares could go up:
At the moment, several elements seem to favour a rise in Dollorama's share price in the medium and long-term with:
- A growing online presence: Dollorama is setting up various operations, including strategic partnerships, in order to develop its online presence and accelerate its digital transformation.
- Greater operational efficiency: the group is currently following a strategy aimed at optimizing its operational efficiency, notably through improved inventory management.
- A favourable macroeconomic environment: Dollorama's financial situation and macroeconomic environment are particularly favourable to its growth in the near future.
- A wide range of products: the group also benefits from the diversification of its portfolio of basic products which provide the major part of its revenue.
- A strong brand image: the Dollorama brand is a strong and easily recognizable brand, which allows it to build customer loyalty and to communicate more easily with its prospects.
- An efficient management: Finally, the management of the Dollorama Group is considered to be particularly capable of leading the company to success and accelerating its growth in the years to come.
Why Dollarama shares could go down:
Other current macroeconomic elements are leaning in favour of a possible decline in the Dollorama share price. Here are the main ones:
- Low profit margin: given Dollorama's pricing strategy, the company's profit margin is relatively low and the group is often forced to put quality on the back burner to remain profitable.
- Lack of online presence: the company still has a weak online presence and this represents a significant loss of revenue to the competition.
- A saturated market: the Dollorama group is already well represented throughout Canada and does not have much leeway to open new physical outlets.
- Limited international presence: Dollorama is only active in Canada, which does not allow it to gain new customers internationally and hampers its growth capacity.
- Strong competition: Dollorama's competitors are more and more numerous on the Canadian market, which tends to reduce its market share.
- Rising costs: Production costs are currently impacted by an increase in labor costs as well as raw material costs and are affecting the group's profitability and earnings.
Can I buy Dollarama stock online?
Yes! You can buy Dollarama shares online. For many buyers this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Dollarama shares?
It is, of course, perfectly possible to sell or transfer Dollarama shares that you own. To do so, you simply need to place a cash sale order with your broker.
However, it is also possible to sell Dollarama shares that you do not own through two distinct solutions:
- Short selling: This is not possible with traditional savings vehicles but is possible with a margin account in Canada.
- Derivative products: certain derivative products such as CFD's or options allow you to take a position on the decline of the Dollorama share price without having to actually hold it.
What investment vehicles in Canada can hold Dollarama stock?
Dollarama shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
To invest in Dollorama shares online, you can of course choose to buy them for cash through your traditional investment account. This method will allow you to receive a dividend.
But you can also choose not to invest in Dollorama shares individually but in a basket of stocks. To do so, all you have to do is use an ETF or an ETF.
Dollarama share price history over 10 years:
Dollarama dividends and payment dates
In 2021, Dollorama Group paid a total dividend of $0.1979 per share to its shareholders.
Thus, the annualized yield of this stock is now 0.53%.
Dollorama pays dividends quarterly, most often in February, May, August and November.
The company has already scheduled the first dividend to be paid in 2022, on February 4, in the amount of $0.0503 per share.
|Dividend: payout 2021||Payout 1||Payout 2||Payout 3||Payout 4|
|Dividend per stock||$0.047 per stock||$0.0503 per stock||$0.0503 per stock||$0.0503 per stock|
|Dividend: payout 2022||Payout 1||Payout 2||Payout 3||Payout 4|
|Dividend per stock||$0.0503 per stock||Pending||Pending||Pending|
What is the dividend yield for Dollarama over the last 10 years?
The yield on Dollarama shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Good to know
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
Good to know
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Dollarama stock:
A critical analysis of Dollarama stock:
The data from the fundamental analysis of Dollorama's stock shows us some relatively interesting signals:
- A robust business model: although forecasts for sales per store, operating profit and earnings per share or EPS are down, analysts expect the group to have solid growth prospects thanks to its robust model.
- Strong cash flow: The cash flow generated in 2021 has been added to the $400 million in capital and will allow the company to make investments, but also to make a new share buyback.
- Dividend expected to increase: analysts also expect an increase in Dollorama's dividend for the 2021 fiscal year and beyond.
- Fundamentals below the industry average: some fundamental data about Dollorama shares remain below the industry average. This concerns in particular its yield as well as the redistribution rate applied by the group.
- Buy recommendations: despite the stock's current valuation of more than 22 times 2022 earnings and well above its history, analysts continue to recommend it as a Buy based on several favourable economic catalysts.
A technical analysis of Dollarama stock:
In terms of technical analysis, the current signals are mostly buy signals with a few sell indicators:
- The RSI is currently at the 61.83 level, which sends a neutral signal for the stock.
- The MACD level is at 3.81, which sends a strong buy signal.
- The stochastics do not give any particular signal in the medium-term and are currently neutral.
- The simple and exponential moving averages are all sending a buy signal apart from the MMA200 which remains neutral for the moment.
- The next technical supports for Dollorama are at 51.68 and 40.15 and the next resistances are at 69.61 and 76.01.
Who is Dollarama?
The Dollorama Group is a Canadian retail company. More specifically, it offers a portfolio of general merchandise, consumables and seasonal items.
Its activities are carried out through its subsidiaries with:
- Dollorama L.P. which is responsible for the operation of the chain of stores in Canada and provides related logistical and administrative support activities.
- Dollorama International, which has retail operations in Latin America through Dollarcity, a value retailer that also offers a portfolio of general merchandise, consumables and seasonal items in stores based in El Salvador and Guatemala as well as in Colombia and Peru. Dollarama International also markets merchandise and provides services to Dollarcity. It offers products in different departments such as Christmas, school and beeswax, home, kitchen, food, health and beauty, cleaning, hardware, party, toys, electronics and pets.
The company currently employs 21,475 people.
Who are Dollarama’s competitors?
The Dollarama group is currently facing strong competition from major retail players, the most important of which are described below:
- Walmart: this American group is currently the world leader in general retailing with more than 3,500 stores and an estimated market share of over 20%. It is also the largest distributor of toys.
- Dollar Tree: this American company is also specialized in mass distribution but at low prices. The group currently has more than 15,237 points of sale in the United States and Canada.
- Sears: Sears, Roebuck and Company is an American distribution group created in the 19th century and which became the largest retailer in the United States. The company became Sears Holding Company after its merger with Kmart in 2005. Today, the group operates 3,800 stores under various banners.
- Costco: Costco Wholesale Corporation is a retail company that operates a self-service wholesale distribution chain. The company currently has over 715 warehouses worldwide.
- Target Corporation: This American company also specializes in mass retailing and is the second largest in the discount sector in the United States. Target used to operate in the Canadian market after the takeover of Zellers, which finally closed its stores.
Who are Dollarama’s partners?
Dollorama has of course also some strategic partners that are interesting to know although they are few in number.
- Dollar City: In 2009, the group signed an 8-year business expertise and supply agreement with the Latin American chain Dollar City, in order to help it expand its store network. Subsequently, in 2019, Dollarama will finally acquire a 50.1% stake in this company.
- Bain Capital Partner: Another long-time partner of Dollorama is Bain Capital Partner, which is a Canadian private equity firm that, among other things, acted as a matchmaker between the group and Dollar City in the 2019 acquisition.
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