After four consecutive quarters of paying its shareholders a $0.15-a-share quarterly dividend, Kroger's board of directors has authorized a 10% dividend hike, to $0.165 a share, the company announced today.
The dividend will be paid on Dec. 1 to shareholders of record on Nov. 15.
Commenting on the decision to increase the dividend, Kroger Chairman and CEO David Dillon said in a statement, "This increase reflects the Board of Directors' continued confidence that our Customer 1st strategy delivers sustainable shareholder value."
Based on Kroger's share price of $40.56 a share at the close of business Sept. 18, the new quarterly dividend has an annual yield of 1.6%. The improved quarterly dividend payout is the highest Kroger has paid its shareholders since it reinitiated its dividend payment policy in 2006.
The article Kroger Increases Dividend 10% originally appeared on Fool.com.
Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.