Kroger's Dividend Growth Prospects Look Bright

The Kroger Co. (NYSE:KR) is one of the best next generation dividend aristocrat stocks.

The company’s dividend profile has become increasingly appealing to income-focused investors, with strong potential for continued growth.

Over the past five years, The Kroger Co. (NYSE:KR) has doubled its quarterly dividend to $0.32 per share, resulting in a yield of 1.9%. Management has signaled that further increases are likely, backed by an ongoing share repurchase program aimed at delivering an annual shareholder return of 5% to 6%, a strategy that could also support future stock appreciation.

These dividends are supported by healthy free cash flow. For fiscal year 2025, The Kroger Co. (NYSE:KR) projects adjusted free cash flow between $2.8 billion and $3.0 billion, reinforcing its commitment to boosting dividends and enhancing shareholder returns. In FY24 alone, it distributed $883 million in dividends to shareholders.

The Kroger Co. (NYSE:KR) has been growing its dividends for the past 18 consecutive years.

The Kroger Co. (NYSE:KR), commonly known as Kroger, is an American retail giant that runs a wide network of supermarkets and multi-department stores across the country.

While we acknowledge the potential of KR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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