Kroger Company (KR) Stock Dividend Date, Yield & Dividend History Analysis

Kroger Co. - KR - Market Position

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Stock Ticker Home Page Asset Class Sector Industry Investment Strategy Dividend Frequency Geographic Focus
KR Kroger Co. Stock / Equity Consumer Staples Food Retail Value Quarterly United States

Kroger Co. (KR) stands as one of the largest supermarket chains in the United States, offering groceries, pharmacy services, and more. With a strong market presence and steady dividend payouts, KR is a compelling choice for investors seeking stability and income in the consumer staples sector.

Kroger Co. - KR - Current Market Data

Kroger Co. - KR - Business Overview

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Section Information

Overview:

The Kroger Co. (KR) is one of the largest supermarket operators in the United States, with a presence across 35 states and the District of Columbia. They operate under various banners, including Kroger grocery stores, Fred Meyer stores, Ralphs, Mariano's, and Pick 'n Save. They offer a wide range of products, including groceries, pharmacy items, fuel, and general merchandise. Their target market includes value-conscious consumers and families seeking one-stop shopping convenience. Kroger holds an estimated 18.9% market share in the U.S. supermarkets industry, making them a dominant player. Kroger's mission is "to be a destination for fresh food inspiration and unbeatable value, where communities come together to nourish their families." Their core values include customer focus, excellence, integrity, respect, diversity, and inclusion.

Business Model:

Kroger generates revenue primarily through product sales in their stores. Their profits come from the difference between the cost of goods sold and the selling price. They also earn revenue from fuel centers, pharmacy services, and their private-label product lines. Kroger's value chain involves a complex network of suppliers, manufacturers, distributors, and logistics providers. Key partners include national and regional food manufacturers, as well as technology providers for their point-of-sale systems and loyalty programs. Their business is segmented geographically with eight operating divisions.

Industry Competition:

The grocery retail industry is highly competitive, with major players like Walmart (WMT), Costco Wholesale (COST), and Albertsons (ACI) vying for market share. Additionally, dollar stores and online grocery delivery services are presenting new challenges. Recent trends in the industry include a growing focus on online grocery shopping, private label brands, and fresh food offerings.

Competitive Advantage:

  • Strong brand recognition and customer loyalty programs
  • Extensive network of stores with a dominant presence in many markets
  • Economies of scale through volume purchasing and efficient distribution
  • Private-label brands offering value to customers
  • Investment in technology and innovation for a seamless customer experience

Management Team:

  • Rodney McMullen (Chairman & CEO): Extensive experience within Kroger, leading the company through various industry shifts.
  • Gary Millerchip (CFO): Proven track record in financial management and cost optimization.
  • Denise Keyes (COO): Strong operational expertise in grocery retail and supply chain management.
The Kroger leadership team boasts significant experience and industry knowledge, with a focus on driving growth and profitability.

Financial Performance:

Kroger has a history of consistent financial performance with steady revenue growth. However, net income and EPS have shown some fluctuations. Recent trends indicate continued profitability, but competition and economic factors could impact future performance. Upcoming events like rising food costs or changes in consumer spending habits could affect their business.

Investment Thesis:

Investors may consider KR for:
  • Exposure to the essential consumer staples sector
  • A well-established company with a strong brand and loyal customer base
  • Potential for continued growth through geographic expansion and private-label offerings
However, consider the risks:
  • Intense competition in the grocery retail industry
  • Rising costs and potential margin pressure
  • Disruption from online grocery shopping and changing consumer preferences

Conclusion:

Kroger is a leading grocery retailer with a strong market position and a recognizable brand. Their focus on value, convenience, and innovation positions them well for future competition. However, the industry landscape is constantly evolving, and investors should be aware of potential risks.

KR Dividend Analysis

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Section Details

KR Dividend Data

The Kroger Co. (KR) has an annual dividend of $1.16. The next dividend payment is expected on June 1, 2024. The last ex-dividend date was on May 14, 2024.

KR Dividend Yield

The forward yield of KR is 2.01%. This means that for every $100 invested in the company's stock, investors would receive $2.01 in dividends per year. The annualized 3-Year dividend growth is 17.39%.

KR Dividend History

The Kroger Co. (KR) has a history of increasing its dividends. Over the past 10 years, KR's dividends per share have been stable. The company has increased its dividend 5 times in the past 5 years.

KR Dividend Payout & Dividend Payout Ratio

KR's dividend payout ratio is 39.19%, which indicates the percentage of earnings the company pays out as dividends.

KR Dividend Stability & Growth

KR's dividend payments have increased over the past 10 years. The 3-year annualized dividend growth is 17.20%, which is in the top 25% of its industry. The 5-year annualized dividend growth is 15.66%, which is in the top 10% of its sector.

KR Chart

KR Comparative Analysis

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Kroger (KR) Yum! Brands (YUM) Dollar General (DG)

Industry Focus

Retail - Supermarket Chains Quick Service Restaurants Discount Retail

Current Yield

2.10% 1.95% 1.60%

Price-to-Earnings Ratio (P/E)

18.65 24.65 19.57

Investment Strategy

Operates supermarkets, multi-department stores, marketplace stores, and price impact warehouse stores Operates quick service restaurants Operates as a discount retailer in the United States

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Financials

Technical Analysis

Additional Considerations

Investing in Kroger Co. (KR), like any other investment, comes with its own set of risks and rewards. The company’s dividend history shows a pattern of consistent and sustainable growth. KR’s dividend yield is currently at 2.10%, which is attractive for dividend investors. However, the dividend payout ratio of 39.19% indicates that the company is using a significant portion of its earnings to pay dividends, which could limit the company’s ability to reinvest in its business or pay down debt.

The Kroger Company operates supermarkets, multi-department stores, convenience stores, fine jewelry stores, and fuel centers. The company’s diverse operations provide some level of protection against downturns in any one segment. However, the company’s stock price can be affected by factors such as changes in food prices, competitive pressures, and changes in consumer spending habits. Therefore, it’s important for investors to consider these factors and their potential impact on KR’s dividend and overall investment performance. It’s also worth noting that while KR’s dividend has increased over the years, the rate of increase has varied, and past performance is not a guarantee of future results.