The Kroger Co. (KR) Rallies on Strength as a Reliable, Broad-Based Defensive Pick

The Kroger Co. (NYSE:KR) is one of the Best Dividend Stocks of 2025.

The company operates over 2,700 stores across the US under various well-known banners, including Fred Meyer, Ralphs, King Soopers, Harris Teeter, and its namesake brand. In addition to its grocery operations, the company runs more than 2,000 in-store pharmacies and 1,500 fuel centers, creating multiple revenue channels.

The Kroger Co. (NYSE:KR) currently offers a dividend yield of about 1.8%, and the company has consistently raised its dividend for 18 consecutive years. On top of that, the company is enhancing shareholder value through a $7.5 billion share repurchase program, which includes a $5 billion accelerated buyback announced after its proposed merger with Albertsons fell through.

For investors focused on long-term, sustainable growth, these traits can be key components of a strong portfolio. The Kroger Co. (NYSE:KR) has surged by over 16% since the start of 2025.

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.

READ NEXT: 10 Best Dividend Stocks for a Bear Market and 10 Best Dividend Stocks to Buy for Dependable Dividend Growth.

Disclosure. None.