June 23, 2023

The nation’s largest traditional grocer is raising dividend payments to shareholders by 12%. The move boosts Kroger Co.’s annual rate to $1.16 per share from $1.04. The change takes effect September 1^st. Cincinnati Business Courier reporter Steve Watkins asked our Jim Russell how this move may impact future results. Russell says it’s a positive sign:

“Kroger’s dividend increase reflects management’s confidence in the ability of the company to maintain operating profitability in a possibly softer economic environment ahead. We are heartened that Kroger is indeed anticipatory and prepared for a period of possibly slower revenue growth over the foreseeable future.”

Russell notes, Kroger’s profit margins and earnings are well above Wall Street’s expectations, and its debt levels continue to decline, giving it more operating flexibility. “Kroger continues to operate at a high level in this very competitive industry.”

Jim Russell, CFA
Portfolio Manager
jrussell@bahl-gaynor.com

See the entire article HERE