CINCINNATI, June 28, 2018 /PRNewswire/ -- The Kroger Co.'s (NYSE: KR) Board of Directors today announced its Board approved a dividend increase from 50¢ to 56¢ per year. The next quarterly dividend of 14 cents per share will be paid on September 1, 2018, to shareholders of record on the close of business on August 15, 2018.
Kroger's quarterly dividend has grown at a compound annual growth rate of nearly 13% since it was reinstated in 2006. The company continues to expect an increasing dividend over time.
"Kroger's dividend increase reflects our Board of Directors' confidence in our Restock Kroger plan," said Rodney McMullen, Kroger's chairman and CEO. "This marks our 12th consecutive year of dividend increases. We are committed to creating shareholder value."
Kroger's strong financial position allowed the company to return more than $2.1 billion to shareholders through share buybacks and dividends combined in 2017.
Kroger's financial strategy is to use its free cash flow to drive growth while also maintaining its current investment grade debt rating and returning capital to shareholders. The company continually balances the use of its cash flow to achieve these goals.
This press release contains forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, about the future performance of the company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by the words "expect," "continues," "strategy," "goals," and "committed." Our ability to continue to fund dividends and increase our dividend over time will be affected by our ability to generate free cash flow at the levels anticipated and our ability to generate expected operating results. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially. We assume no obligation to update the information contained herein. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose: to Feed the Human Spirit™. We are nearly half a million associates who serve nine million customers daily through a seamless digital shopping experience and 2,800 retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.
SOURCE The Kroger Co.