CINCINNATI, June 27, 2019 /PRNewswire/ -- The Kroger Co.'s (NYSE: KR) Board of Directors today announced its Board approved a dividend increase from 56 cents to 64 cents per year. The next quarterly dividend of 16 cents will be paid on September 1, 2019 to shareholders of record as of close of business on August 15, 2019.
Kroger's quarterly dividend has grown at a double-digit compound annual growth rate since it was reinstated in 2006. The company continues to expect, subject to board approval, an increasing dividend over time.
"Kroger's 14 percent dividend increase underscores our Board of Director's confidence in the momentum we are building in the second year of Restock Kroger and our ability to deliver strong free cash flow," said Rodney McMullen, Kroger's chairman and CEO. "This marks our 13th consecutive year of dividend increases. We are committed to creating shareholder value and achieving our long-term vision to serve America through food inspiration and uplift."
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 actively balances the use of its cash flow to achieve these goals.
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 over 11 million customers daily through a seamless digital shopping experience and 2,761 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.
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 "achieving," "expect," "continues," "drive," "strategy," "goals," "growth," "committed," "momentum," "strategy," "vision," and similar words or phrases. 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.
SOURCE The Kroger Co.