"Is The Kroger Co. (KR) the Best Performing Dividend Stock to Buy Now?"

In the ever-evolving landscape of dividend stocks, one name that consistently stands out is The Kroger Co. (KR). With a dividend yield of 1.92% and a market cap of $47.62 billion, Kroger is not just the largest grocery supermarket chain in the United States but also a formidable player in the dividend game. But is it the best performing dividend stock to buy now? Let's dive in and find out.



First, let's look at the numbers. Kroger's annual dividend of $1.28 per share, paid every three months, provides a steady income stream for investors. The last ex-dividend date was February 14, 2025, indicating a consistent dividend payment schedule. This stability is crucial for income-focused investors who rely on regular payouts.

But how does Kroger's dividend yield compare to its competitors? Sprouts Farmers Market (SFM) has a dividend yield of 0.00%, Ingles Markets (IMKTA) has a yield of 1.09%, and Walmart (WMT) has a yield of 0.85%. Kroger's 1.92% yield is not only higher than its competitors but also competitive within the broader market, which typically ranges from 1.5% to 2%.

Now, let's talk about financial performance. In 2024, Kroger's revenue was $147.12 billion, a slight decrease from the previous year's $150.04 billion. However, earnings were $2.67 billion, an increase of 24.18%. This earnings growth is a positive sign for dividend sustainability, as it provides the company with the financial flexibility to maintain and potentially increase its dividend payments.

But it's not just about the numbers. Kroger's dividend policy has evolved significantly over the years. The dividend yield has fluctuated, but it has shown a pattern of growth. For example, in 2024, the dividend yield was 2.00%, and in 2023, it was 2.41%. This indicates that Kroger has been able to maintain a consistent dividend yield over time, which is a positive sign for dividend investors.

However, it's not all sunshine and rainbows. Kroger's recent CEO resignation due to personal conduct issues has raised some concerns. The company's fiscal 2025 projection falls short of analyst estimates, and the latest big store chain to issue downbeat guidance. This could impact investor confidence and potentially affect the stock price.

But let's not forget the bigger picture. Kroger's strong financial performance, consistent dividend payments, and competitive dividend yield make it a strong dividend stock. The company's commitment to returning value to shareholders through its dividend policy is evident in its historical data and industry benchmarks.

In conclusion, while there are some concerns, Kroger's strong dividend yield, consistent dividend growth, and stable financial performance make it a strong dividend stock. Whether it's the best performing dividend stock to buy now depends on your investment goals and risk tolerance. But one thing is for sure: Kroger is a company worth watching in the dividend game.