10 Best S&P 500 Stocks to Buy For Dividend Growth

4. The Kroger Co. (NYSE:KR)

5-Year Average Dividend Growth Rate: 15.05%

The Kroger Co. (NYSE:KR) is an Ohio-based retail company that operates a network of supermarkets and multi-department stores across the US, with a strategy centered on a diverse retail model. Many locations incorporate pharmacies and fuel centers, enabling the company to attract a broad customer base while reducing dependence on any single revenue stream. Since the beginning of 2025, its stock has risen by over 6%, and its 12-month return came in at over 17%.

In the fourth quarter of 2024, The Kroger Co. (NYSE:KR) reported adjusted earnings per share of $1.14, matching the prior year’s figure and exceeding analysts’ expectations. Revenue came in at $34.3 billion, missing the projected $34.75 billion and reflecting a 7% decline from the same period a year earlier. Operating profit dropped by nearly 24% year over year. However, the company’s Alternative Profit Businesses, which include advertising and data services, contributed $1.35 billion in operating profit, supported by a 17% rise in media-related revenue. Digital sales increased by 11%, underscoring efforts to enhance the shopping experience. In addition, the introduction of more than 900 new products under the “Our Brands” portfolio reinforced its focus on private-label expansion to improve profit margins.

For the fiscal year 2024, The Kroger Co. (NYSE:KR) generated $5.8 billion in operating cash flow, strengthening its position as a reliable dividend payer. Over the year, the company distributed $883 million to shareholders through dividends. It offers a quarterly dividend of $0.32 per share, yielding 1.94%, as of March 26. Kroger has consistently increased its dividend payouts for the past 18 years, coming through as one of the best dividend stocks on our list.