Kroger Boosts Annual Dividend By 12%

The Kroger Co KR announced a 12% increase in its annual dividend to $1.16 from $1.04, marking the 17th consecutive year of dividend boost.

The company will pay the next quarterly dividend per share of $0.29 on September 1, 2023, to shareholders of record as on August 15, 2023.

Since 2006, Kroger has increased its quarterly dividend at a CAGR of 13.7%. 

"This dividend increase reflects the Board of Directors' confidence in our strategy of Leading with Fresh, Accelerating with Digital. Our business continues to generate strong and consistent free cash flow and has proven to be resilient in a variety of operating environments. The strength of our balance sheet provides significant financial flexibility to continue to invest in our business to drive growth," said Rodney McMullen, Chairman and CEO. 

Last week, Kroger reported first-quarter FY23 sales growth of 1.3% year-on-year to $45.16 billion, missing the analyst consensus of $45.24 billion, and adjusted EPS of $1.51, beating the analyst consensus of $1.46.

KR stated that it plans to continue to pay its quarterly dividend and expects this to increase over time, subject to board approval. 

The company has paused its share repurchase program to prioritize de-leveraging following the proposed merger with Albertsons Companies Inc ACI.

Also Read: Kroger's 1Q23 Earnings Bolstered By Strategic Initiatives: Analyst Upholds Outperform Rating

Price Action: KR shares are trading higher by 0.20% at $45.77 on the last check on Thursday.