Kroger Unveils Stock Split, $500 Million Buyback And Dividend Hike

Kroger Co KR shares ticked up after the company boosted its dividend 13.5 percent and unveiled a 2-for-1 stock split.

The Cincinnati-based grocer also announced a $500 million buyback.

Kroger, with a market capitalization of $35.53 billion, traded recently at $73.77, up 1.1 percent. Shares are off about 2.7 percent in the past three months.

Kroger Chief Executive Rodney McMullen said the stock split will boost trading liquidity.

"We are especially excited that the stock split will make Kroger's common shares more accessible to all of our associates," McMullen said.

Kroger employs about 400,000 people.

Related Link: Kroger Q1 Profit Tops Expectations

Kroger said it continues to expect an increasing dividend over time, noting that the payments have seen double-digit compound growth since they were reinstated in 2006.

The newly increased dividend, worth $0.21 a share on a pre-split basis, is payable September 1.

The split will boost Kroger's shares outstanding to 962 million, from 481 million and will be effected as a stock dividend payable July 13 to holders of record July 6.

Kroger beat first quarter expectations and boosted its outlook last week and had slated its annual meeting for Wednesday.