10 Dividend Stocks with Sustainable Payout Ratios

5. The Kroger Co. (NYSE:KR)

5-Year Average Payout Ratio: 32.8%

The Kroger Co. (NYSE:KR) ranks fifth on our list of the best dividend stocks with sustainable payout ratios. The American retail company operates a network of supermarkets and multi-department stores across the US. In fiscal Q4 2025, it reported $34.3 billion in revenue, reflecting a 7% year-over-year decline and falling short of analysts’ expectations of $34.7 billion. Operating profit also took a hit, dropping more than 27% compared to the same period the previous year.

On a brighter note, The Kroger Co. (NYSE:KR) Alternative Profit Businesses—which include advertising and data services—delivered $1.35 billion in operating profit, supported by a 17% rise in media-related revenue. Digital sales rose by 11%, underscoring the company’s continued efforts to improve the customer experience. Kroger also rolled out over 900 new products under its “Our Brands” lineup, highlighting its push to grow private-label offerings and strengthen profitability.

The Kroger Co. (NYSE:KR) maintained a solid cash position, reinforcing its reputation as a dependable dividend payer. In fiscal year 2024, the company generated $5.8 billion in operating cash flow and returned $883 million to shareholders through dividend payments. Its strong cash position resulted in the company’s low payout ratio of nearly 33% in the past five years. It currently pays a quarterly dividend of $0.32 per share and has a dividend yield of 1.8%, as of April 17. The company also holds an 18-year streak of consistent dividend growth.