Kroger Co (The) (KR) DIvidends Date & History

Key Takeaways

• Kroger pays a quarterly dividend of $0.35 per share, annualized to $1.40.
• Current dividend yield stands at approximately 2.16%.
• The company has raised its dividend for 19 consecutive years since reinstating it in 2006.
• Payout ratio hovers around 87-91%, supported by strong free cash flow.
• Dividend growth has averaged about 9.6% over the past year and higher over longer periods.
• Suitable for investors seeking moderate income with growth potential in consumer staples.

Dividend Overview

The Kroger Co. (KR) follows a quarterly dividend policy, distributing payments four times per year. The most recent quarterly dividend is $0.35 per share, equating to an annualized total of $1.40. With a trailing yield near 2.16%, the stock offers a modest but reliable income stream typical of established consumer staples companies. Kroger is positioned as a dividend growth stock rather than a high-yield name, emphasizing consistent increases supported by its supermarket operations and ancillary businesses. The company reinstated dividends in 2006 and has maintained a disciplined approach to returning capital while investing in its core retail network.

Dividend History and Growth

Kroger has demonstrated strong dividend consistency, with 19 consecutive annual increases through 2025. The quarterly payout rose from $0.29 in mid-2024 to $0.32 later that year, then to $0.35 in 2025—a 9% hike. Over the past year, annualized dividend growth reached approximately 9.6%, with compounded annual growth rates of 11-14% across three- to ten-year horizons. Since reinstatement, the dividend has expanded at a 13% compound annual rate. Payments have remained uninterrupted on a quarterly schedule, reflecting Kroger’s focus on sustainable shareholder returns alongside business reinvestment.

Dividend Sustainability and Payout Ratio

Kroger’s payout ratio of roughly 87-91% indicates the dividend consumes a substantial portion of earnings yet remains manageable given robust free cash flow generation. Management has highlighted the use of free cash flow to support both growth initiatives and dividends while preserving an investment-grade credit rating. Debt levels are monitored to ensure stability, and the company has not signaled any intent to alter its payout policy. Overall financial health, including steady supermarket sales and pharmacy operations, supports continued dividend coverage without undue strain.

Dividend Compared to Industry Peers

Within the consumer staples and food retail sector, Kroger’s yield of about 2.16% sits modestly above some pure-play grocery peers but below broader sector averages near 3%. Competitors such as Costco Wholesale often feature lower yields paired with faster growth, while traditional retailers like Target show comparable profiles. Kroger’s combination of yield and a long growth streak positions it as an average-to-slightly-below-average payer relative to defensive staples names, appealing to those prioritizing reliability over maximum income.

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Is This Stock Attractive for Dividend Investors?

Kroger may appeal to income-focused investors who value steady quarterly payments and a proven record of annual increases over two decades. Dividend growth investors could find the 19-year streak and mid-single-digit to low-double-digit historical growth rates attractive for long-term compounding. Conservative, long-term holders in the consumer staples space might appreciate the company’s defensive business model and commitment to maintaining an investment-grade balance sheet. The modest yield and elevated payout ratio suggest it is less suited for those seeking high current income or aggressive growth. As with any equity, suitability depends on individual portfolio needs and risk tolerance; the stock offers a balanced profile for patient dividend strategies.

Disclaimer

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