If You Invested $10K In Kroger Stock 10 Years Ago, How Much Would You Have Now?

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Kroger KR is a food and drug retailer in the U.S. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses.

It is set to report its Q1 2025 earnings on June 20. Wall Street analysts expect the company to post EPS of $1.54, up from $1.43 in the year-ago period. According to Benzinga Pro, quarterly revenue is expected to reach $45.17 billion, down from $45.27 billion a year earlier.

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If You Bought Kroger Stock 10 Years Ago

The company's stock traded at approximately $38.04 per share 10 years ago. If you had invested $10,000, you could have bought roughly 263 shares. Currently, shares trade at $65.47, meaning your investment's value could have grown to $17,211 from stock price appreciation alone. However, Kroger also paid dividends during these 10 years. 

Kroger's dividend yield is currently 1.99%. Over the last 10 years, it has paid about $7.82 in dividends per share, which means you could have made $2,056 from dividends alone. 

Summing up $17,211 and $2,056, we end up with the final value of your investment, which is $19,267. This is how much you could have made if you had invested $10,000 in Kroger stock 10 years ago. This means a total return of 92.67%. However, this figure is significantly below the S&P 500 total return for the same period, which was  235%.

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What Could The Next 10 Years Bring? 

Kroger has a consensus rating of "Buy" and a price target of $63.22 based on the ratings of 23 analysts. The price target implies more than a 3% potential downside from the current stock price.

On March 6, the company announced its Q4 2024 earnings, posting adjusted earnings per share of $1.14, beating the street view of $1.11, as reported by Benzinga.

Quarterly sales of $34.308 billion slightly missed the analyst consensus estimate of $34.509 billion.

The company provided its full-year 2025 guidance, expecting adjusted EPS in the range of $4.60 to $4.80, compared to the consensus of $4.79. Full-year identical sales growth without fuel is seen in the range of 2.0% to 3.0%.

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Given the expected downside potential, growth-focused investors may not find Kroger stock attractive. Conversely, the stock can be a good option for income-focused investors, who can benefit from the company's solid dividend yield of 1.99% and consistent hikes. Kroger has raised its dividend consecutively for the last 18 years.

Check out this article by Benzinga for three more stocks offering high dividend yields. 

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