The Kroger Co. (NYSE:KR) Raises Dividend to $0.39 Per Share

The Kroger Co. (NYSE:KR) declared a quarterly dividend on Thursday, June 25th. Investors of record on Saturday, August 15th will be paid a dividend of 0.39 per share on Tuesday, September 1st. This represents a c) dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, August 14th. This is a 11.4% increase from Kroger’s previous quarterly dividend of $0.35.

Kroger has raised its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 19 consecutive years. Kroger has a payout ratio of 27.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Kroger to earn $5.56 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 25.2%.

Kroger Stock Down 1.2%

Shares of NYSE:KR traded down $0.72 on Thursday, hitting $57.76. 6,302,463 shares of the company’s stock were exchanged, compared to its average volume of 9,372,065. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.39 and a current ratio of 0.79. The firm’s 50-day moving average is $64.82 and its 200 day moving average is $66.15. The company has a market capitalization of $35.38 billion, a PE ratio of 11.81, a P/E/G ratio of 1.64 and a beta of 0.42. Kroger has a 1-year low of $55.60 and a 1-year high of $76.58.

Kroger (NYSE:KR) last announced its earnings results on Thursday, June 18th. The company reported $1.58 earnings per share for the quarter, missing the consensus estimate of $1.59 by ($0.01). Kroger had a net margin of 0.71% and a return on equity of 44.33%. The company had revenue of $46.12 billion during the quarter, compared to analysts’ expectations of $45.59 billion. During the same quarter last year, the business posted $1.49 earnings per share. The company’s revenue for the quarter was up 2.2% compared to the same quarter last year. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. Sell-side analysts predict that Kroger will post 5.22 EPS for the current year.

Institutional Investors Weigh In On Kroger

Several institutional investors have recently bought and sold shares of the company. Connor Clark & Lunn Investment Management Ltd. increased its holdings in shares of Kroger by 45.5% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 855,810 shares of the company’s stock worth $57,690,000 after buying an additional 267,434 shares during the last quarter. Westpac Banking Corp raised its stake in Kroger by 126.2% in the third quarter. Westpac Banking Corp now owns 35,667 shares of the company’s stock worth $2,404,000 after buying an additional 19,898 shares in the last quarter. American Century Companies Inc. increased its stake in shares of Kroger by 16.2% during the third quarter. American Century Companies Inc. now owns 2,063,474 shares of the company’s stock valued at $139,099,000 after purchasing an additional 287,755 shares in the last quarter. Te Ahumairangi Investment Management Ltd grew its holdings in shares of Kroger by 18.1% during the third quarter. Te Ahumairangi Investment Management Ltd now owns 150,356 shares of the company’s stock valued at $10,135,000 after buying an additional 23,027 shares during the last quarter. Finally, JCP Investment Management LLC purchased a new position in Kroger in the 3rd quarter worth about $1,773,000. Institutional investors own 80.93% of the company’s stock.

About Kroger

The Kroger Co (NYSE: KR) is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger’s stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.

In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.