The Kroger Co. (NYSE:KR) to Issue Quarterly Dividend of $0.32

The Kroger Co. (NYSE:KR) announced a quarterly dividend on Thursday, September 19th, Zacks reports. Stockholders of record on Friday, November 15th will be given a dividend of 0.32 per share on Sunday, December 1st. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.31%. The ex-dividend date is Friday, November 15th.

Kroger has increased its dividend payment by an average of 17.4% per year over the last three years and has increased its dividend every year for the last 19 years. Kroger has a dividend payout ratio of 28.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Kroger to earn $4.63 per share next year, which means the company should continue to be able to cover its $1.28 annual dividend with an expected future payout ratio of 27.6%.

Kroger Stock Performance

Kroger stock opened at $55.39 on Friday. The firm has a market capitalization of $39.98 billion, a PE ratio of 18.90, a price-to-earnings-growth ratio of 0.80 and a beta of 0.47. Kroger has a one year low of $42.10 and a one year high of $58.34. The stock’s 50 day moving average price is $53.66 and its 200 day moving average price is $53.84. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.45 and a current ratio of 0.86.

Kroger (NYSE:KR) last announced its earnings results on Thursday, September 12th. The company reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.91 by $0.02. Kroger had a net margin of 1.43% and a return on equity of 29.89%. The business had revenue of $33.91 billion during the quarter, compared to the consensus estimate of $34.09 billion. During the same period in the prior year, the firm earned $0.96 earnings per share. The business’s quarterly revenue was up .2% compared to the same quarter last year. As a group, sell-side analysts expect that Kroger will post 4.45 EPS for the current fiscal year.

Insider Transactions at Kroger

In other Kroger news, VP Carin L. Fike sold 3,010 shares of Kroger stock in a transaction that occurred on Tuesday, September 17th. The stock was sold at an average price of $55.57, for a total value of $167,265.70. Following the completion of the transaction, the vice president now directly owns 47,593 shares in the company, valued at $2,644,743.01. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In related news, VP Brian W. Nichols sold 2,000 shares of Kroger stock in a transaction dated Friday, July 19th. The shares were sold at an average price of $54.53, for a total value of $109,060.00. Following the sale, the vice president now directly owns 18,063 shares in the company, valued at approximately $984,975.39. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Carin L. Fike sold 3,010 shares of the firm’s stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $55.57, for a total transaction of $167,265.70. Following the completion of the sale, the vice president now owns 47,593 shares in the company, valued at approximately $2,644,743.01. The disclosure for this sale can be found here. Insiders own 1.40% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the company. JPMorgan Chase & Co. lifted their target price on Kroger from $58.00 to $59.00 and gave the stock an “overweight” rating in a research report on Friday, September 13th. Evercore ISI lifted their price objective on Kroger from $62.00 to $63.00 and gave the stock an “outperform” rating in a report on Friday, September 13th. BMO Capital Markets upgraded Kroger from a “market perform” rating to an “outperform” rating and increased their target price for the company from $58.00 to $60.00 in a research note on Tuesday, June 18th. Telsey Advisory Group restated an “outperform” rating and issued a $62.00 price target on shares of Kroger in a research note on Monday, September 9th. Finally, Morgan Stanley increased their price objective on shares of Kroger from $57.00 to $58.00 and gave the company an “equal weight” rating in a research note on Friday, September 13th. One research analyst has rated the stock with a sell rating, three have given a hold rating, eight have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $59.09.

About Kroger

The Kroger Co operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys.