Greedflation: Kroger -- June 22, 2023

Locator: 45012INFL. 

Comments later but I think the "cut and paste" graphics are self-explanatory. 

This is so out-of-the ordinary one wonders if there is a typographical error or if I'm misreading something, but the links and screenshots are there. We'll check back in a month or so and see if this is legit.

Link here.

Link here.

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Kroger

Updates

June 26, 2023: the original note had to have been in error. See update here. The "correct" story suggests that the dividend hike was in line with past dividend hikes.

Original Post

Annualized dividend:

• historical: 2.28%.
• new: 10.14%. For a grocer (and almost any ticker) beyond the pale, as they say.
  

Link here.

Link here.

Dividend increase.

Earnings: link here, a huge beat. Especially considering all this whining about inflation affecting retailer's costs.

The company has a quarterly EPS of $1.51 and announces it will pay shareholders $1.16 in dividends out of those earnings? 

The math is ludicrous but works out to: 77% of earnings paid out to shareholders. 

If this is all accurate:

• something is going on about which I have no clue; and/or
• Kroger is expecting a blockbuster year;
• or there's a typo somewhere.
  

If accurate, tell me again, grocers aren’t using the “inflation story” to pad their earnings. White bread loaf before “inflation story”: 99 cents / loaf.

White bread loaf now: $1.49 / loaf.

That’s the cheap stuff. I can only imagine the spread (no pun intended) on premium brand bread.

Inflation: whatever cost the customer will bear. Don’t take that out of context. See links above.

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All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. 

Again, all my posts are done quickly. There will be typographical and content errors in all my posts. If any of my posts are important to you, go to the source.