Today Kroger announced a 4.2% increase in their dividend. They also announced a new $1 billion dollar buy back program but as great as that is I am way more interested in the dividend. Since the recent decline in the stock I have been adding to my position. As long as the price stays below my cost basis I will continue to add more shares.
The ex-dividend date is August 11 so all of the stock that I acquire before then will get this increase as well. I’m currently holding 16 shares of Kroger so this will only increase my projected annual dividend income by $0.32. I’m hoping to increase this amount by that time though.
The company is still a great company despite what has been happening to their stock lately. They have a great footprint with some very well run stores. Even though they beat earnings expectations, their forward guidance of only 1% growth has scared a lot of investors away. With me believing in the company so much I can’t help but add to my position and reap the benefits for many years to come.
I look forward to reading everyones thoughts and comments.
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As always I hope that everyone is doing good out there and happy investing.