The grocer announced this week that it plans to repurchase an additional $500 million worth of shares, which comes on top of the $500 million buyback program the company started in June. According to Cincinnati Business Courier, $392 million still remains for those buybacks that began in June.
“Kroger’s share repurchase authorization reflects our board of directors’ confidence in our customer-first strategy and our ability to create value for shareholders,” Rodney McMullen, Kroger’s chairman and CEO, said in a statement. “We are committed to delivering long-term growth investors can count on.”
If the buyback itself wasn’t a big enough win for shareholders, Kroger announced that it was implementing a new quarterly dividend, paying $0.12 per share, which will be begin on Nov. 15 and be paid on Dec. 1.
Over the past four quarters alone, Kroger has paid out more than $1.5 billion through buybacks and dividends, according to Cincinnati Business Courier.
In June, Kroger announced a stock split and raised its quarterly dividend 14 percent. The company said in a statement that it expects its dividends to continue to grow. Kroger has had 50 consecutive quarters of positive sales growth, according to Seeking Alpha. During that time, Kroger’s profits increased a total of 83 percent.
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So, the company’s ambitious, aggressive buyback program appears to be working.
