Kroger Rewards Shareholders With 9% Increase in Quarterly Dividend

Core Insights - Kroger Co. has announced a 9% increase in its quarterly cash dividend, reflecting confidence in long-term prospects and a commitment to delivering stable returns to investors [1][10] - The annual dividend will rise from $1.28 to $1.40 per share, with the next payment of 35 cents per share scheduled for September 1, 2025 [2][10] - This marks the 19th consecutive year of dividend increases since its reinstatement in 2006, with a compounded annual growth rate of 13% over this period [3][10] Financial Performance - The company expects adjusted free cash flow between $2.8 billion and $3 billion for fiscal 2025, supporting growth and dividend payouts [4][10] - Kroger's stock has gained 6.8% over the past three months, compared to the industry's growth of 13.8% [9] - The forward 12-month price-to-sales ratio for Kroger is 0.31X, indicating a lower valuation compared to the industry average of 1.06X [11] Earnings Estimates - The Zacks Consensus Estimate for Kroger's current financial-year sales implies a year-over-year growth of 1.1%, while earnings per share are expected to grow by 6.5% [12] - For the current quarter, the sales estimate is $34.10 billion, with a year-over-year growth estimate of 0.56% [13] - The earnings per share estimate for the current quarter is $1.01, reflecting an 8.6% year-over-year growth [14]