11 Best Retail Dividend Stocks to Buy

6. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 60

The Kroger Co. (NYSE:KR) is an American retail company that operates a network of supermarkets and multi-department stores across the US. The company operates over 2,700 supermarkets under multiple grocery brands. An important aspect of its strategy is its varied retail format, which incorporates pharmacies and fuel centers in numerous locations. This approach enables the company to attract a wide range of customers while minimizing reliance on a single revenue source. The stock is generating solid returns in 2025, surging by over 7% so far this year, while its 12-month return came in at over 17%.

In the fourth quarter of 2024, The Kroger Co. (NYSE:KR) reported revenue of $34.3 billion, which declined by 7% from the same period last year. The revenue also missed analysts’ estimates of $34.7 billion. The company’s operating profit also dropped by over 27% on a YoY basis. However, its Alternative Profit Businesses, encompassing advertising and data services, generated $1.35 billion in operating profit, driven by a 17% increase in media-related revenue. Digital sales saw an 11% uptick, highlighting ongoing initiatives to enhance the customer experience. Additionally, the launch of over 900 new products under the “Our Brands” portfolio emphasized its commitment to expanding private-label offerings to boost profitability.

The Kroger Co. (NYSE:KR)’s cash position came in strong, which makes it a reliable dividend payer. In FY24, the company reported an operating cash flow of $5.8 billion. Over the year, the company distributed $883 million worth of dividends to shareholders. Its quarterly dividend comes in at $0.32 per share for a dividend yield of 1.92%, as of March 29. KR is one of the best dividend stocks on our list as the company maintains an 18-year streak of consistent dividend growth.