By Investing.com Staff
Kroger (NYSE:KR) gave investors something to cheer about Thursday after lifting the quarterly cash dividend by 24%, pushing the yield above 2%.
The quarterly dividend goes from $0.21 to $0.26 per share or $1.04 annualized.
The dividend will be payable on September 1, 2022, to stockholders of record on August 15, 2022, with an ex-dividend date of August 12, 2022. The dividend yield based on the new payout is 2.2%.
The grocer's quarterly dividend has grown at a 14% compounded annual growth rate since it was reinstated in 2006. This marks the 16th consecutive year of dividend increases.
Last year Kroger's dividend hike was 17% and the prior year it was 13%. This year's increase was the largest since 2012 when the dividend was raised by 30%.
"This dividend increase reflects the Board of Directors' confidence in our strategy of Leading with Fresh, Accelerating with Digital," said Rodney McMullen, Kroger's Chairman and CEO. "Our business continues to generate strong and consistent free cash flow and has proven to be resilient in a variety of operating environments. The strength of our balance sheet provides significant financial flexibility to continue to invest in our business to drive growth. Looking ahead, we are well positioned to deliver total shareholder returns of 8 – 11% over time."