Kroger Co (KR) will raise its quarterly dividend by 16.7 percent to 21 cents per share in 2021. This follows a dividend hike of 12.5 percent to 18 cents per share in 2020. The supermarket operator has now raised its dividend for 15 consecutive years. Last year Kroger was one of just a few large-cap companies listed on US exchanges to announce a dividend hike during the COVID-19 pandemic.

The next quarterly dividend of $0.21 per share will be paid on September 1, 2021 to shareholders of record as of close of business on August 13, 2021. The new annualized dividend rate of 84 cents per share translates into a 2.1% dividend yield at a stock price of $39.21 for Kroger.

"In recognition of our strong performance during the last year, we are proud to increase the quarterly dividend at a higher rate than our historical average," said Rodney McMullen, Kroger's Chairman and CEO. "This increase reflects the Board of Directors' confidence in the strength of our free cash flow and our ability to deliver consistently strong and attractive total shareholder returns."  

The company currently pays approximately $636 million in annual dividends to shareholders. The stock has gained almost 24 percent year-to-date, resulting in a market cap of $29 billion for The Kroger Co.

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.