Kroger dividend
Kroger's current dividend is $1.56 per share, and its base forecast rises from $1.64 to $1.80 per share and then $1.98. Fiscal 2026 adjusted free cash flow guidance is $2.7–$2.9 billion, so the dividend appears covered, although cash also has to fund stores, debt, litigation and Giant Eagle.
How much does Kroger pay its shareholders?
The base dividend rises from $1.64 to $1.80 per share. It reaches $1.98 in the final year. The bear case holds at $1.56 because weak cash flow, debt, investment, or legal costs could stop increases. The bull case reaches $2.11 because earnings and cash recover faster. The current $1.56 rate and management’s expectation of increases support the base, while quarterly free cash flow of $167 million argues against assuming the bull path.
| Jan 2026 | Feb 2025 | Feb 2024 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| EPS, diluted | 1.54 | 3.67 | 2.96 | 3.06 | 2.17 |
| Free cash flow per share | 5.28 | 2.47 | 3.98 | 1.95 | 4.74 |
| − Dividends paid, per share | 1.35 | 1.23 | 1.10 | 0.94 | 0.78 |
| − Share buybacks, per share | 4.12 | 7.16 | 0.09 | 1.37 | 2.18 |
What this means. The company's own free cash flow per share is higher because it leaves out certain merger, pension, opioid, and other cash costs that our count includes.
Is Kroger's dividend covered by its cash?
The imbalance narrowed but remained in the year ended January 2026. Free cash flow was $3,456 million. Dividends and buybacks totaled $3,584 million, or 103.7% of it. Cash and short-term investments ended at $3,334 million against total debt of $17,566 million. Net debt was $14,232 million, compared with $10,343 million in February 2024. Kroger’s own net-debt measure was $14,448 million at January 2026.
The headline free cash flow yield is 9.3%, while the separately calculated real yield is 8.9%. Fiscal 2026 adjusted free cash flow guidance is $2.7–$2.9 billion. That implies a yield of 7.3%–7.8% on today’s market value, leaving the dividend apparently covered but not free from competing claims.
| Jan 2026 | Feb 2025 | Feb 2024 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 3,456 | 1,777 | 2,884 | 1,420 | 3,576 |
| − Dividends paid | 885 | 883 | 796 | 682 | 589 |
| − Share buybacks | 2,699 | 5,156 | 62 | 993 | 1,647 |
| Paid to shareholders | 3,584 | 6,039 | 858 | 1,675 | 2,236 |
| Paid out, % of free cash flow | 103.7% | 339.8% | 29.8% | 118.0% | 62.5% |
What could change Kroger's dividend?
The bull case would require traffic and units to improve in fiscal 2027–2028, followed by stronger store-based fulfillment, retail media, and alternative-profit cash generation through fiscal 2029. The expected Giant Eagle closing in 2027 and successful integration by fiscal 2029 are the clearest dated tests. The Albertsons damages trial began on October 19, 2026, making its outcome an immediate valuation and cash-flow swing factor.
What is Kroger's dividend yield at today's price?
| Today (Oct 19, 2026) | |
|---|---|
| Share price | 62.75 |
| Free cash flow yield (calculated) | 9.3% |
| Real free cash flow yield (calculated) | 8.9% |
| Dividend yield (calculated) | 2.5% |