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The Kroger Co, known by the ticker symbol KR,  is a large-cap grocery stores company, operating in the consumer defensive business sector. This is my first report on KR for this Viital portfolio or any of my previous six dog of the week portfolios.

Kroger is the leading American grocer, with 2,742 supermarkets operating under several banners throughout the country as of the end of fiscal 2020. 

Around 82% of stores have pharmacies, while over half also sell fuel. The company also operated more than 150 fine jewelry stores at the end of fiscal 2020. 

Kroger features a leading private-label offering and it manufactures around 30% of its own-brand units (and 40% of its grocery own-label assortment)  in 35 food production plants nationwide. 

Kroger is a top-two grocer in most of its major markets (as of early 2021, according to company data). Virtually all of Kroger's sales come from the United States.

The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.

Three key data points gauge any dividend equity or fund such as The Kroger Co (KR):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

KR Price

Kroger's price per share was $45.04 as of yesterday's market close. One year ago its price was $34.02. Therefore Kroger's share price increased $10.98 or 32.28% in the past year.

If Kroger's stock trades in the range of $33.00 to $53.00 this next year, its recent $45.04 share price might rise by $0.46 to reach $45.50 by February 23, 2023. This estimate is  $0.03 below the median of target prices estimated by 25 analysts covering Kroger for brokerages.

Kroger's most recent quarterly dividend of $0.21 is payable March 1st, to shareholders on record as of February 14th.  The KO  Annual estimated dividend payout per share of $0.84 yields 1.87% per yesterday's $45.04. closing price.

KR Dividends

Kroger has paid regular quarterly dividend payouts generally increasing annually since June, 2006. That stretch will mark 16 years come June 1.

KR Returns

Adding the $0.84 annual Kroger forward-looking dividend to its estimated one-year price upside of $0.46 shows a $1.30 potential gross gain, per share, to be reduced by any costs to trade KR shares.  

At yesterday's $45.04 price per share, a little under $1000 would buy 22 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us  $0.45 per share.

Subtract that maybe $0.45 brokerage cost from my estimated $1.30 gross gain estimate per share results in a net gain of $0.85 X 22 shares = $18.70 for a 1.87% net gain on a $990.88 investment.

So it is that The Kroger Co (KR) shows a possible 1.88% net gain including a 1.87% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in The Kroger Co (KR) could generate $18.70 in cash dividends alone. Note that a single share of KR stock bought at yesterday's share price of $45.04 is almost 2.5 times greater than the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a terrible time to pickup The Kroger Co (KR) shares. The estimated next-year dividend from $1K invested is 2.41 times LESS than yesterday's single share price of KR. Consider yourself alerted. Its a sign!  Wait for Kroger's share price to drop to $29.00

All of the estimates above are speculation based on the past history of The Kroger Co (KR). Only time and money invested in this stock will determine its market value.