Kroger Increases Their Dividend by 14.3%
Dividend Increase Announcement
On June 27th, Kroger announced a dividend increase of 14.3%. This will increase their dividend per quarter from $0.14 to $0.16. It is payable on September 1st for shareholders of record on August 15th. The new quarterly dividend represents an annualized dividend amount of $0.64 per share as compared to the current annualized dividend amount of $0.56 per share.
Target Dividend Information
Annual Dividend: $0.64
Dividend Yield: 2.99%
Dividend Growth History: 10 years
Payout Ratio: 30.2%
Dividend Increase Effect On More Dividends
I am currently holding 18 shares of Kroger. Unfortunately these shares are sitting in a RobinHood account so I am not able to DRIP the dividends but I do save them up and continue to reinvest them. With this 14.3% increase, it will add $1.44 to my Projected Annual Dividend Income.
As we all know, Kroger operates in a very low margin industry. Despite this Kroger is positioned as a leader in their industry. A very strong argument could be made that Kroger is a risky value play here. They are carrying a lot of debt but in due time their transformation strategy should start showing some very positive results. The big questions of course is will it succeed and when.
For the time being, I am going to just hold my position as it is. If the share price continues to depreciate I would definitely consider buying more so that I could lower my cost basis.
Regardless of how large or small, I love all dividend increases. That is how we end up with More Dividends 😉
Do you currently hold any stock in Kroger? What do you think of this dividend increase? Just let me know in the comments.
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
Be sure and follow me on your favorite social media platform:
MoreDividendsdotcom on Facebook
@MoreDividends on Twitter
If you would like to receive an email whenever I publish a new article:
I bought 6 shares when I woke up then went out and did some things and checked and wow a dividend raise quick addition of money lol. As long as it stays low I’m going to try to get as many as I can
Doug recently posted…Buys and sells June 19
Yeah, I have been thinking about adding a little bit to my position given that it is well below my cost basis. I know that they operate in a low margin business but they are a leader in their industry and that is why I keep them around!
Thanks for stopping by Doug. I look forward to talking with you more in the future!