CINCINNATI, June 25, 2020 /PRNewswire/ -- The Kroger Co.'s (NYSE: KR) Board of Directors approved a dividend increase from 64 to 72 cents per year. The next quarterly dividend of 18 cents per share will be paid on September 1, 2020 to shareholders of record as of the close of business on August 14, 2020.
Kroger's quarterly dividend has grown at a double-digit compound annual growth rate since it was reinstated in 2006. This marks the 14th consecutive year of annual dividend increases. The company continues to expect, subject to board approval, an increasing dividend over time.
"Kroger's 13 percent dividend increase reflects our ability to deliver strong free cash flow during uncertain times and throughout the economic cycle," said Rodney McMullen, Kroger's chairman and CEO. "It also reflects the Board of Directors' confidence in both our business model and our commitment to return value to shareholders and achieve consistently attractive total shareholder returns."
Kroger's capital allocation strategy is to use its adjusted free cash flow to invest in the business and drive profitable growth while also maintaining its current investment grade debt rating and returning capital to shareholders. The company actively balances the use of its adjusted free cash flow to achieve these goals.
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