CINCINNATI, June 23, 2016 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today announced that its Board of Directors raised the quarterly dividend by 14 percent, to 12 cents per share, to be paid on September 1, 2016, to shareholders of record on the close of business on August 15, 2016.
Kroger today also announced a new, $500 million share repurchase program, replacing the prior authorization, which has been exhausted.
"We remain committed to delivering value to shareholders. Kroger has delivered double-digit compound growth in its dividend since we reinstated it in 2006," said Rodney McMullen, Kroger's chairman and CEO. "Our strong cash flow has enabled us to return to shareholders more than $2.7 billion in dividends since 2006."
The company continues to expect an increasing dividend over time.
"Kroger has also returned $12.9 billion to shareholders through share repurchases since January 2000 – effectively buying back half the company's shares over the last sixteen years," said Mr. McMullen.
Every day, the Kroger Family of Companies makes a difference in the lives of eight and a half million customers and 431,000 associates who shop or serve in 2,778 retail food stores under a variety of local banner names in 35 states and the District of Columbia. Kroger and its subsidiaries operate an expanding ClickList offering – a personalized, order online, pick up at the store service – in addition to 2,230 pharmacies, 785 convenience stores, 323 fine jewelry stores, 1,400 supermarket fuel centers and 38 food production plants in the United States. Kroger is recognized as one of America's most generous companies for its support of more than 100 Feeding America food bank partners, breast cancer research and awareness, the military and their families, and more than 145,000 community organizations including schools. A leader in supplier diversity, Kroger is a proud member of the Billion Dollar Roundtable.
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" and "continues." Our ability to continue to repurchase shares, 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.
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SOURCE The Kroger Co.