Kroger swells dividend by 24% on ‘confidence in strategy’, pushes yield above 2%

© Reuters.Kroger (KR) Bumps Dividend 24% on ‘Confidence in Strategy’, Pushes Yield Above 2%

By Staff

Kroger (NYSE: Kroger) brought some cheer to investors on Thursday after raising its quarterly cash dividend by 24% and pushing its yield above 2%.

Quarterly dividends range from $0.21 to $0.26 per share or $1.04 annually.

The dividend will be paid on September 1, 2022 to shareholders of record on August 15, 2022, with an ex-dividend date of August 12, 2022. The dividend yield based on the new payout is 2.2%.

The grocer’s quarterly dividend has grown at a compound annual growth rate of 14% since it recovered in 2006. This marked the 16th consecutive year of dividend increases.

Kroger’s dividend grew 17% last year, compared with 13% the year before. This year’s increase was the largest since a 30% dividend hike in 2012.

“This dividend increase reflects the Board’s confidence in our strategy to lead with freshness and accelerate with digital,” said Kroger Chairman and CEO Rodney McMullen. “Our business continues to generate strong and ongoing free cash flow and has already Proven to be resilient in a variety of operating environments. The strength of our balance sheet provides significant financial flexibility to continue investing in our business to drive growth. Going forward, we have the ability to continue over time 8% to 11% total return for shareholders.”

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