Kroger expects its quarterly dividend to increase over time
The Kroger Co.’s board of directors has issued a quarterly dividend of 16 cents per share, to be paid on Dec. 1, to shareholders of record as of the close of business on Nov. 15.
“The Restock Kroger framework is designed to reposition our company for the future while delivering for shareholders today,” noted Rodney McMullen, the company’s chairman and CEO. “Kroger’s board is confident in our strategy to create shareholder value and the momentum we are building to deliver on our long-term vision to serve America through food inspiration and uplift.”
In June, the board raised the quarterly dividend from 56 cents to 64 cents per year. Kroger’s quarterly dividend has grown at a double-digit compound annual growth rate since it was reinstated in 2006. The company said that it expects the dividend to increase over time, subject to board approval.
According to Kroger, its financial strategy is to use its free cash flow to drive growth while also maintaining its current investment grade debt rating and returning capital to shareholders, actively balancing the use of its free cash flow to attain these goals.
Cincinnati-based Kroger employs nearly half a million associates who serve 9 million-plux customers daily through a seamless digital shopping experience and 2,769 retail food stores under a variety of banner names. The company is No. 2 on Progressive Grocer’s 2019 Super 50 list of the top grocers in the United States.