January 03, 2026 a 12:46 pm
KR: Dividend Analysis - The Kroger Co.
The Kroger Co., one of the largest American retail companies, showcases a resilient dividend profile with a strong history of payouts. Maintaining a reasonable dividend yield of 2.01%, Kroger emphasizes its commitment to returning value to shareholders. Despite economic fluctuations, Kroger's-dividend growth reflects modest gains, indicating sustainable payout practices over the years. With a robust competitive position in the retail sector, investors find Kroger a compelling dividend stock with promising returns.
📊 Overview
The Kroger Co. stands out as a key player in the retail sector, offering a dividend yield of 2.01%. With a current dividend per share of USD 1.23, the company boasts an impressive 39-year history of dividend payouts, making it a reliable choice for dividend investors. The last recorded cut or suspension was back in 2006, signifying a solid track record of financial resilience.
| Metric | Details |
|---|---|
| Sector | Retail |
| Dividend yield | 2.01% |
| Current dividend per share | 1.23 USD |
| Dividend history | 39 years |
| Last cut or suspension | 2006 |
📉 Dividend History
Kroger's consistent dividend growth over the past decades highlights its commitment to rewarding shareholders. This is particularly important for investors seeking reliable income streams and indicates the company's financial health and stability.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.34 |
| 2024 | 1.22 |
| 2023 | 1.10 |
| 2022 | 0.94 |
| 2021 | 0.78 |
📈 Dividend Growth
Understanding dividend growth is vital for predicting future dividend income. Kroger's 3-year dividend growth rate is 0.13%, while the 5-year growth is 0.15%. These figures reflect moderate growth, aligning with stable long-term investment strategies.
| Time | Growth |
|---|---|
| 3 years | 12.54% |
| 5 years | 14.53% |
The average dividend growth is 14.53% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is a critical metric in assessing dividend sustainability. Kroger's EPS-based payout ratio stands at 102.52%, while the free cash flow-based ratio is 36.40%. While the EPS-based ratio exceeds 100%, potentially signaling unsustainable dividends, the FCF-basis remains well-covered.
| Key Figure | Ratio |
|---|---|
| EPS-based | 102.52% |
| Free cash flow-based | 36.40% |
💵 Cashflow & Capital Efficiency
A healthy cash flow and efficient capital use are indispensable for maintaining dividend payouts and funding growth. Kroger's recent free cash flow yield and earnings yield highlight the firm's capacity to generate surplus cash, crucial for ongoing operations and shareholder distributions. Key ratios showcase its robust cash generation capabilities.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.03% | 8.71% | 3.85% |
| Earnings Yield | 6.05% | 6.53% | 7.00% |
| CAPEX to Operating Cash Flow | 0.69 | 0.58 | 0.71 |
| Stock-based Compensation to Revenue | 0.12% | 0.11% | 0.13% |
| Free Cash Flow / Operating Cash Flow Ratio | 30.67% | 42.49% | 28.60% |
Kroger's cash flow metrics reflect a reliable ability to cover its capital expenditures and sustain dividend payments, underpinning its financial strength.
🗣️ Balance Sheet & Leverage Analysis
Evaluating the balance sheet and leverage of a company is crucial for understanding financial stability. Kroger's debt metrics indicate significant leverage, with a Debt-to-Equity ratio of over 3x. While leverage can enhance returns, it also poses risk, particularly if cash flows falter.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 3.03 | 1.66 | 2.03 |
| Debt-to-Assets | 0.48 | 0.38 | 0.41 |
| Debt-to-Capital | 0.75 | 0.62 | 0.67 |
| Net Debt to EBITDA | 4.01 | 2.47 | 2.76 |
| Current Ratio | 0.88 | 0.81 | 0.74 |
| Quick Ratio | 0.52 | 0.36 | 0.30 |
| Financial Leverage | 6.35 | 4.35 | 4.93 |
Despite the elevated leverage ratios, Kroger manages its financing well, though continuous cash flow sufficient for interest and debt repayments is critical.
🏦 Fundamental Strength & Profitability
Understanding the fundamental strength and profitability provides insights into the firm's operational efficiency. Key profitability ratios such as Return on Equity and asset-based performance measures shed light on Kroger's financial success.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 32.17% | 18.63% | 22.35% |
| Return on Assets | 5.06% | 4.28% | 4.53% |
| Margins: Net | 1.81% | 1.44% | 1.51% |
| Margins: EBIT | 2.58% | 2.18% | 2.32% |
| Margins: EBITDA | 5.19% | 4.68% | 4.73% |
| Margins: Gross | 22.70% | 22.24% | 21.43% |
| Research & Development to Revenue | 0.00% | 0.00% | 0.00% |
Kroger's profitability ratios depict a company efficiently generating returns from its resources, although maintaining such profitability levels demands continued focus on cost management and revenue growth.
📉 Price Development
🔍 Dividend Scoring System
Our dividend scoring system evaluates key factors influencing Kroger's dividend attractiveness, reflected in individual scores across several categories.
| Category | Score | Graph |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 4 | |
| Payout Ratio | 3 | |
| Financial Stability | 3 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 27/40
✔️ Rating
In summary, The Kroger Co. presents itself as a robust choice for dividend investors, characterized by stability and modest growth. Despite leverage considerations, its dividend commitment and operational efficiencies underscore its long-term potential, earning a conservative buy rating for income-focused portfolios.