Kroger's Board of Directors Raises Quarterly Dividend by 9%

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Kroger (NYSE:KR) announced a 9% increase in its quarterly dividend from $1.28 to $1.40 per year. The next quarterly dividend of 35 cents per share will be paid on September 1, 2025, to shareholders of record as of August 15, 2025.

This marks Kroger's 19th consecutive year of dividend increases, with the quarterly dividend showing a 13% compounded annual growth rate since its 2006 reinstatement. The company's capital allocation strategy focuses on using free cash flow to drive sustainable earnings growth while maintaining investment grade debt rating and returning capital to shareholders.

Positive

• Dividend increased by 9% to $1.40 per year
• 19th consecutive year of dividend increases
• 13% compounded annual growth rate in quarterly dividend since 2006
• Strong free cash flow generation
• Commitment to maintain investment grade debt rating

Negative

• None.

CINCINNATI, June 26, 2025 /PRNewswire/ -- The Kroger Co.'s (NYSE: KR) Board of Directors approved a dividend increase from $1.28 to $1.40 per year. The next quarterly dividend of 35 cents per share will be paid on September 1, 2025, to shareholders of record as of close of business on August 15, 2025.

The company's quarterly dividend has grown at a 13% compounded annual growth rate since it was reinstated in 2006. This marks the 19^th consecutive year of dividend increases. The company continues to expect, subject to board approval, an increasing dividend over time.

"This dividend increase reflects the Board of Directors' confidence in the consistency of our operating performance, strength of our free cash flow generation, and our commitment to deliver long-term shareholder value," said Ron Sargent, Kroger's Chairman and CEO.

Capital Allocation Strategy

Kroger's capital allocation strategy is to use its free cash flow to invest in the business to drive long-term sustainable net earnings growth while also maintaining its current investment grade debt rating and returning capital to shareholders. The company actively balances the use of its free cash flow to achieve these goals.

About Kroger
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose: To Feed the Human Spirit™. We are, across our family of companies nearly 410,000 associates who serve over 11 million customers daily through an eCommerce and store experience under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.

This press release contains certain statements that constitute "forward-looking statements" 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 words or phrases such as "continues," "expect," "goals," and "strategy."  Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in "Risk Factors" in our annual report on Form 10-K for our last fiscal year and any subsequent filings, as well as the following:

Kroger's ability to achieve sales, earnings, incremental FIFO operating profit, and adjusted free cash flow goals may be affected by: labor negotiations; potential work stoppages; changes in the unemployment rate; pressures in the labor market; changes in government-funded benefit programs; changes in the types and numbers of businesses that compete with Kroger; pricing and promotional activities of existing and new competitors, and the aggressiveness of that competition; Kroger's response to these actions; the state of the economy, including interest rates, the inflationary, disinflationary and/or deflationary trends and such trends in certain commodities, products and/or operating costs; the geopolitical environment including wars and conflicts; unstable political situations and social unrest; changes in tariffs; the effect that fuel costs have on consumer spending; volatility of fuel margins; manufacturing commodity costs; supply constraints; diesel fuel costs related to Kroger's logistics operations; trends in consumer spending; the extent to which Kroger's customers exercise caution in their purchasing in response to economic conditions; the uncertainty of economic growth or recession; stock repurchases; changes in the regulatory environment in which Kroger operates, along with changes in federal policy and at regulatory agencies; Kroger's ability to retain pharmacy sales from third party payors; consolidation in the healthcare industry, including pharmacy benefit managers; Kroger's ability to negotiate modifications to multi-employer pension plans; natural disasters or adverse weather conditions; the effect of public health crises or other significant catastrophic events; the potential costs and risks associated with potential cyber-attacks or data security breaches; the success of Kroger's future growth plans; the ability to execute our growth strategy and value creation model, including continued cost savings, growth of our alternative profit businesses, and our ability to better serve our customers and to generate customer loyalty and sustainable growth through our strategic pillars of fresh, our brands, personalization, and eCommerce; the outcome of litigation matters, including those relating to the terminated transaction with Albertsons; and the risks relating to or arising from our opioid litigation settlements, including the risk of litigation relating to persons, entities, or jurisdictions that do not participate in those settlements. Our ability to achieve these goals may also be affected by our ability to manage the factors identified above. Our ability to execute our financial strategy may be affected by our ability to generate cash flow.

Kroger assumes no obligation to update the information contained herein unless required by applicable law. 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.

FAQ

What is Kroger's new dividend amount for 2025?

Kroger increased its annual dividend by 9% from $1.28 to $1.40 per year, with quarterly payments of 35 cents per share.

When will Kroger (KR) pay its next quarterly dividend in 2025?

Kroger will pay its next quarterly dividend on September 1, 2025 to shareholders of record as of August 15, 2025.

How long has Kroger been increasing its dividend?

Kroger has increased its dividend for 19 consecutive years, with the quarterly dividend growing at a 13% compounded annual growth rate since 2006.

What is Kroger's capital allocation strategy?

Kroger's strategy focuses on using free cash flow to invest in business growth, maintain investment grade debt rating, and return capital to shareholders.

What is the dividend record date for Kroger's Q3 2025 dividend?

The record date for Kroger's Q3 2025 dividend is August 15, 2025.