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Dollarama Inc T.DOL

Alternate Symbol(s):  DLMAF

Dollarama Inc. is a Canada-based company, which offers various assortment of general merchandise, consumable products, and seasonal items both in-store and online. The Company conducts its business through its subsidiaries, including Dollarama L.P. and Dollarama International Inc. (Dollarama International). Dollarama L.P. operates the chain of stores in Canada and performs related logistical and administrative support activities. Dollarama International has retail operations in Latin America through Dollarcity, a value retailer that offers an assortment of general merchandise, consumable products and seasonal items in stores located in El Salvador and Guatemala and stores located in Colombia and Peru. All stores are corporately owned and operated, and are conveniently located in metropolitan areas, mid-sized cities and small towns. The Company operates approximately 1,569 stores across Canada.


TSX:DOL - Post by User

Post by wsjbrokerson Jul 08, 2022 9:22pm
257 Views
Post# 34812372

Dividend is 5 cents /quarter or .29% ?

Dividend is 5 cents /quarter or .29% ?
The company has 4 billion in debt and paying min. 3% interest on debt?
This company won't be able to borrow cheap money and pay less than 5%. Even real estate companies with collateral have to pay 10% for investors.
As for growth, they need to borrow money to build more stores and that cost money. it's not funded by profits but by borrowing money.  That is not a good use of capital.  Basically this just allows insiders and privilleged investors to exit at high prices.  at market cap of 22 billion? and p/e of 32. remember in high interest rates the interest expense this company pays can wipe out all the earnings as this company been borrowing cheap money on 1-2% low interest environment and they pay inventory with borrowed money. So what is the point of buying back shares when dividend yield is only .29% and the company can halt dividends as that is not the reason people buy or own this stock for. If investors wanted dividends they would buy bonds, GIC or REITS or real estate. also the bonds this company is getting is unsecured as this company has no real hard assets to secure other than equity.
The TSX is lost it's credibility with companies a few years ago moving to marijauna a stock or cannabis theme and than crypto theme investments. TSX, TSV, and venture exhanges in Canada are an embarassment like nortel etc. Canadians get rip off investments and limited investment opportunities. 50% of the investors retail holders. and a few large investors who bought cheap  when the share price was cheap like under $10 and market cap under 5 billion.
most market valuatio is market cap =  revenues. this company only has less than 4 billion and market cap is 22 billion. it took the company 10 years and 4 bilion in debt to get 4 billion in revenue and it was only possible with cheap borrowing when interest rates as like 2% for 5 years.
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