BOISE, Idaho - Albertsons (NYSE:ACI) Companies, Inc. (NYSE: ACI), a prominent food and drug retailer in the United States, has declared a quarterly cash dividend of $0.12 per share of common stock. The dividend is scheduled for payment on November 8, 2024, to shareholders on record by the close of business on October 28, 2024.
The company, which operates under more than 20 banners including Albertsons, Safeway, and Vons, is known for its extensive network of 2,267 retail food and drug stores. As of September 7, 2024, Albertsons also boasts 1,726 pharmacies, 405 associated fuel centers, 22 distribution centers, and 19 manufacturing facilities across 34 states and the District of Columbia.
Albertsons has a history of community involvement and philanthropy. In 2023, the company and its foundation contributed over $350 million in food and financial support. This includes more than $35 million through the Nourishing Neighbors Program to combat hunger in local communities and aid those affected by disasters.
While the announcement of the dividend is a factual statement, the company's press release also contained forward-looking statements regarding its expectations and projected financial performance. These statements are based on current expectations and come with risks and uncertainties that could cause actual results to differ materially. Albertsons advises against placing undue reliance on these forward-looking statements, which are only relevant as of the date of the release.
The company has directed investors and media to contact their respective relations departments for more information. This dividend declaration is based on a press release statement from Albertsons Companies , Inc.
In other recent news, Kroger (NYSE:KR) Co. has made substantial strides in its exchange offers and consent solicitations related to Albertsons Companies Inc. notes. The company has extended the expiration dates and received consents that surpass the required threshold. These developments are contingent upon the successful completion of Kroger's merger with Albertsons, expected to occur in the fourth quarter of 2024.
However, the proposed merger is facing opposition from the U.S. Federal Trade Commission and several states, who express concerns about potential price hikes and weakening of unionized employees' bargaining power. Despite these concerns, Kroger CEO Rodney McMullen has refuted any potential price increases post-merger, attributing the rise in grocery prices to higher supplier costs, fuel prices, and credit card swipe fees.
These are recent developments in the ongoing saga of the Kroger-Albertsons merger. The trial, expected to last three weeks, will focus on the competitive nature of the grocery industry and the potential impacts of the merger on the grocery industry and consumers. The outcome of these legal proceedings will undoubtedly have significant implications on the future of both companies and the broader grocery sector.
InvestingPro Insights
Albertsons Companies, Inc. (NYSE: ACI) continues to demonstrate its commitment to shareholder value through its recently announced quarterly dividend. This aligns with the company's financial health, as reflected in several key metrics from InvestingPro.
According to InvestingPro data, Albertsons boasts a market capitalization of $10.57 billion and a price-to-earnings (P/E) ratio of 9.41. This relatively low P/E ratio suggests that the company may be undervalued compared to its earnings, which could be attractive to value-oriented investors.
InvestingPro Tips highlight that Albertsons is trading at a low earnings multiple and is a prominent player in the Consumer Staples Distribution & Retail industry. These factors, combined with the company's consistent dividend payments, underscore its stable position in the market.
The company's revenue for the last twelve months stands at an impressive $79.45 billion, with a modest growth of 1.36%. This steady performance, coupled with a gross profit margin of 28.42%, indicates Albertsons' ability to maintain profitability in the competitive retail food sector.
It's worth noting that Albertsons' dividend yield is currently 2.63%, which may appeal to income-focused investors. This dividend policy aligns with the company's profitability, as InvestingPro Tips confirm that Albertsons has been profitable over the last twelve months.
For investors seeking a deeper understanding of Albertsons' financial position, InvestingPro offers additional insights. There are 6 more InvestingPro Tips available for ACI, providing a comprehensive view of the company's strengths and potential challenges in the current market environment.
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