Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
Dollar Tree’s Big Decade
One of the market leaders of the past decade was retail giant Dollar Tree, Inc. (NASDAQ: DLTR).
The 2010s were a transformative decade for the retail sector. Amazon.com, Inc. (NASDAQ: AMZN) applied major pressure to a large portion of the sector, but dollar stores were relatively insulated from much of the online pressure.
Dollar Tree’s decade was defined by rapid growth of both the organic and inorganic nature. In 2010, Dollar Tree opened its 4,000th chain store and acquired 86 stores from Canada’s Dollar Giant. By the end of the 2019, Dollar General had a whopping 16,094 stores in 44 different U.S. states.
The biggest headline of the decade came in 2014 when Dollar Tree announced a $9.2 billion buyout of competitor Family Dollar. Dollar General Corp. (NYSE: DG) subsequently announced a higher $9.7 billion bid for Family Dollar, but Family Dollar shareholders ultimately rejected the competing offer and approved the Dollar Tree deal. Dollar Tree divested 330 stores as part of the regulatory approval process for the deal.
Dollar Tree issued a 3-to-2 stock split back in 2010 and another 2-to-1 split in 2012, so all the prices mentioned below are on split-adjusted terms.
Dollar Tree shares started the 2010s trading at around $16, which would represent its low point of the decade. Prior to its first split in 2010, Dollar Tree shares had dipped climbed as high as $21.48.
After the first split, the stock immediately began ripping higher once again, rising as high as $56.81 in mid-2012 just prior to the second split.
Dollar Tree made it to $60.19 in 2013 prior to the buyout of Family Dollar. Upon the deal’s completion, Dollar Tree shares hit $80 for the first time in early 2015. The stock didn’t stop there, continuing above $100 for the first time in late 2017 and hitting its decade high of $119.71 in late 2019.
2020 And Beyond
Dollar Tree has cooled off significantly since hitting those all-time highs, and is now trading back around $82.
Nevertheless, Dollar Tree has been one of the best retail sector performers of the past decade. In fact, $100 worth of Dollar Tree stock in 2010 would be worth about $441 today, assuming reinvested dividends.
Looking ahead, analysts expect a big year from Dollar Tree in 2020. The average price Dollar Tree among the 26 analysts covering the stock is $100, suggesting 21.4% upside from current levels.