Kroger announces quarterly dividend of 32 cents per share

CINCINNATI - The Kroger Co. (NYSE: KR), a prominent player in the Consumer Staples sector with a market capitalization of $43.41 billion, has announced that its Board of Directors declared a quarterly dividend of 32 cents per share, which is scheduled for payment on June 1, 2025, to shareholders on record as of May 15, 2025. The current dividend yield stands at 1.97%.

The company highlighted its dividend growth, noting a 13.5% compounded annual growth rate since the dividend was reinstated in 2006. According to InvestingPro data, Kroger has maintained dividend payments for 20 consecutive years and has raised its dividend for 19 straight years, with a recent dividend growth rate of 10.34%. Kroger also indicated that it anticipates a continued increase in its dividend over time, contingent upon future board approvals.

Kroger’s capital allocation strategy emphasizes investing its free cash flow back into the business to foster sustainable long-term net earnings growth. The company’s financial health score is rated as "GOOD" by InvestingPro, with management actively buying back shares. In addition, the company aims to maintain its current investment grade debt rating while also returning capital to its shareholders.

The press release included forward-looking statements regarding the company’s future performance, based on current management expectations and subject to various risks and uncertainties. These statements were qualified by cautionary language, highlighting that actual results could materially differ due to a multitude of factors. Such factors include labor negotiations, competition, economic conditions, fuel costs, consumer spending trends, regulatory changes, and the potential impact of cyber threats, among others.

This dividend declaration is part of Kroger’s broader financial strategy, which also focuses on cost savings, growth of alternative profit streams, and enhancing customer loyalty through strategic initiatives.

The information in this article is based on a press release statement from The Kroger Co.

In other recent news, Kroger Company reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.14, which exceeded analyst expectations of $1.11. However, the company reported revenues of $34.3 billion, falling short of the anticipated $34.75 billion. Despite the revenue miss, Kroger’s digital and delivery sales demonstrated notable growth, with digital sales increasing by 10% and delivery solutions by 18%. Jefferies maintained a Buy rating on Kroger with a $75 price target, citing the company’s strong fourth-quarter performance and stable market outlook, despite inflationary pressures.

Evercore ISI adjusted its price target for Kroger to $73, down from $75, while maintaining an Outperform rating. The firm expressed confidence in Kroger’s ability to meet its total shareholder return goals, despite slightly lagging industry sales growth. Guggenheim also reaffirmed its Buy rating with a $71 price target, highlighting Kroger’s strategic initiatives and potential operational improvements. Additionally, Kroger announced the appointment of Yael Cosset as Chief Digital Officer, leading a new eCommerce business unit to enhance the online shopping experience.

These developments reflect Kroger’s strategic focus on digital growth and operational efficiency amidst a challenging market environment. The company continues to attract attention from analysts for its resilience and potential for sustained growth.

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