The Kroger (KR) Beats Estimates, Increases Dividend

The Kroger company has released some stellar news over the last few days. On Tuesday, during their quarterly earnings report, they announced that net income was $261.6 million, or 41 cents a share, an increase of 2.8 percent from $254.4 million, or 39 cents, a year earlier. Sales were up 6 percent, to $18.8 billion, from $17.7 billion a year earlier. Analysts surveyed by Thomson Reuters had expected 36 cents a share and $18.7 billion in revenue.

Today, the company announced that its Board of Directors increased the amount of its quarterly dividend to 10.5 cents per share from 9.5 cents per share.  The dividend will be paid on December 1, 2010 to shareholders of record as of the close of business on November 15, 2010.

This 10.5% increase is the fourth time the Board has raised the quarterly dividend since it initiated the program in 2006.

UBS boosted its estimates on shares of Kroger through 2012. The company continued to execute well in a difficult environment. The analysts reiterated a “neutral” rating and set a $23.00 price target in a research note to investors on Wednesday.

Over the past 12 months Kroger Co (NYSE:KR) shares have traded between $19.08 and its 52-week high of $24.8. 

The Masters take: shares are trading just 2 points off of their 52 week high, but in the middle of their 52 week range. If you're looking for a long term investment with increasing dividend potential, KR is a safe play for you.