Kroger Raises Annual Dividend 24%
June 23, 2022
The Kroger Company Board of Directors has approved an annual dividend increase of 24% bringing its dividend payment to $1.04 per share. The announcement came at today’s annual meeting. The nation’s largest operator of traditional supermarkets will now pay shareholders 26 cents a share each quarter, up from 21 cents. The first payment at the new rate occurs September 1st.
Cincinnati Business Courier reporter Steve Watkins asked our Jim Russell what the move says about Kroger moving forward. He replied:
“Kroger’s strong dividend increase reflects the company’s strong operating outlook as management remains optimistic while maintaining strong profitability trends during this period of rising inflation.”
Russell further believes Kroger will continue to thrive even amid high inflation.
“Kroger has established credibility with shoppers with high-quality store brands, and volumes in this category are anticipated to rise as growth slows in the U.S. over the foreseeable future,” Russell said. “Sales growth at Kroger continues to outpace the industry as customers gained during the pandemic appear to be loyal, adding to sales gains. Kroger is likely to see higher costs in transportation and compensation but higher revenues appear to be more than offsetting these operating headwinds.”
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