Kroger offers 2-for-1 stock split, boosts dividend

The largest supermarket operator in the United States is on fire, so it makes sense that the Kroger Co. approved its first stock split in 16 years and a 13.5% dividend increase.

The company announced that its board of directors approved an increase to the company's quarterly dividend, a two-for-one split of its common shares, and a new $500 million share repurchase program.

"Today's actions reflect our Board of Directors' confidence in Kroger's long-term performance and ability to deliver growth consistently to our investors," said Rodney McMullen, Kroger's chairman and CEO. "The stock split will increase the accessibility of our shares and liquidity in the trading of our shares. We are especially excited that the stock split will make Kroger's common shares more accessible to all of our associates."

Kroger's board raised the quarterly dividend to 21 cents per share on a pre-split basis. Kroger has delivered double-digit compound growth in its dividend since it was reinstated in 2006. The company continues to expect an increasing dividend over time.

The board also approved a two-for-one split of its common shares. On or about July 13, each shareholder of record as of the close of business will receive a dividend of one common share for each common share held. This is the fifth stock split in Kroger's history.

The board also approved a $500 million share repurchase program, replacing the prior authorization, which has been exhausted.

"Kroger's strong financial position has allowed the company to return approximately $11.7 billion to shareholders through share repurchases since January 2000," said McMullen. "We remain committed to delivering value to shareholders. In fact, over the last four quarters, the company has returned more than $1.1 billion to shareholders through share buybacks and dividends combined."

Kroger, one of the world's largest retailers, employs nearly 400,000 associates who serve customers in 2,626 supermarkets and multi-department stores in 34 states and the District of Columbia under two dozen local banner names.