CINCINNATI, June 22, 2017 /PRNewswire/ -- The Kroger
Co.'s (NYSE: KR) Board of Directors today announced an incremental
$1 billion share repurchase program,
replacing the prior authorization which has been exhausted.
Kroger also announced that its Board today approved a dividend
increase from 48¢ to 50¢ per year. The next quarterly dividend of
12.5 cents per share will be paid on
September 1, 2017, to shareholders of
record on the close of business on August
15, 2017.
Kroger's quarterly dividend has grown at a compound annual
growth rate of 13.0% since it was reinstated in 2006. The company
continues to expect an increasing dividend over time.
"Kroger's share repurchase authorization and dividend increase
reflects our Board of Directors' confidence in our long-term
strategy," said Rodney McMullen,
Kroger's chairman and CEO. "Kroger has repurchased nearly half of
the shares of the company and has returned approximately
$14 billion to shareholders through
share repurchases since January 2000.
We are committed to delivering value that our shareholders can
count on."
Kroger's strong financial position allowed the company to return
more than $1.9 billion to
shareholders through share buybacks and dividends over the last
four quarters.
Kroger remains committed to balancing its use of cash flow over
the near term to achieve the leverage ratio appropriate to maintain
its current investment-grade debt rating.
At The Kroger Co., we are dedicated to our purpose: to Feed
the Human Spirit™. We are 443,000
associates who serve eight and a half million customers every day
in 2,792 retail food stores under a variety of local banner names
in 35 states and the District of
Columbia. Our Family of Companies operates an expanding
ClickList offering – a personalized order online service – in
addition to 2,255 pharmacies, 782 convenience stores, 311 fine
jewelry stores, 220 retail health clinics, 1,453 supermarket fuel
centers and 38 food production plants in the United States. Our Company has been
recognized as one of America's most generous companies for its
support of more than 100 Feeding America food bank partners, breast
cancer research and awareness, the military and their families, and
more than 145,000 community organizations including schools. As a
leader in supplier diversity, we are a proud member of the
Billion Dollar Roundtable.
This press release contains forward-looking statements, as
that term is defined in the Private Securities Litigation Reform
Act of 1995, 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 the words "expect," "continues," and
"committed." Our ability to continue to repurchase shares,
fund dividends, and increase our dividend over time will be
affected by our ability to generate free cash flow at the levels
anticipated and our ability to generate expected operating results.
These forward-looking statements are subject to uncertainties and
other factors that could cause actual results to differ materially.
We assume no obligation to update the information contained herein.
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.