Why should you buy a retail stock that’s already gone up 63% this year and almost doubled in the last 12 months?Kroger_Logo

Maybe it’s time you took a look at this one.

The Kroger Company (KR), one of the largest grocery retailers, also operates drug stores, department stores, jewelry and convenience stores and continues to put its free cash flow back into shareholder’s pockets.

This company’s future stock price looks bright as the Cincinnati based company announced it would raise its quarterly dividend by 10% to 16.5 cents from $15 cents a share.

That’s the seventh consecutive annual increase in Kroger’s quarterly dividend since 2006.

And that’s a company committed to increasing shareholder return, as Kroger has returned over $8.3 billion to shareholders via dividends and share buybacks in the last 7 years.KR2013-09chart

Add to that a very customer focused brand-building strategy…

* Kroger has put in place a customer loyalty program by tracking customer data and rewarding loyal customers with customized discounts.

* They jumped on the increasing demand from consumers for food made of natural ingredients and have easily integrated these products into their very successful sales mix.

* And they began attracting new customers to their stores by offering organic and natural food at lower prices then some other better known “green” grocers.

And if that’s not enough, Kroger has rewarded its investors with a 51% return on investment over the last 5 years.

Maybe it’s time you added this grocer to your own portfolio-shopping list.

 

Share This