Kroger Co (KR) will raise its quarterly dividend by 14.3 percent $0.16 per share in 2019. This follows last year's 12.0 percent dividend hike to $0.14 per share. The supermarket operator has now raised its dividend for 13 consecutive years.

The next quarterly dividend of 16 cents will be paid on September 1, 2019 to shareholders of record as of close of business on August 15, 2019. The new annualized dividend rate of 64 cents per share translates into a 3.0% dividend yield at a stock price of $21.39.

Kroger states that its quarterly dividend has grown at a double-digit compound annual growth rate since it was reinstated in 2006. The company continues to expect, subject to board approval, an increasing dividend over time, Kroger says in today's press release.

"Kroger's 14 percent dividend increase underscores our Board of Director's confidence in the momentum we are building in the second year of Restock Kroger and our ability to deliver strong free cash flow," said Rodney McMullen, Kroger's chairman and CEO. "This marks our 13th consecutive year of dividend increases. We are committed to creating shareholder value and achieving our long-term vision to serve America through food inspiration and uplift."

The Kroger Co. operates supermarkets and multi-department stores throughout the United States. Kroger operates supermarkets under a variety of local banner names, including pharmacies, fuel centers and jewelry stores. The company's brands include Baker's, City Market, Dillons, Food 4 Less, Foods Co, Fred Meyer, Fry's, Gerbes, Harris Teeter, King Soopers, Jay C Food Store, Kroger, Owens Market, Pay-Less Super Markets, QFC, Ralphs and Smith's Food and Drug. The Kroger Co. was founded in 1883 and incorporated in 1902.