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    Kroger (KR) Affirms Its Dividend, Is The 9% Undervaluation Enough?

    Simply Wall St·09/20/2026 02:19:53
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    Kroger (KR) has affirmed a quarterly dividend of $0.39 per share, payable on December 1, 2026. This payout decision provides investors with updated income context for a stock trading near US$60.

    Kroger’s latest dividend call comes after an earnings update in mid August that showed higher sales and earnings per share, continued share buybacks, and new merchandising moves such as expanding its pumpkin themed Private Selection range and placing greater emphasis on private label and supplier pricing disputes.

    Despite these developments, the share price has eased 4.7% on a year to date basis. The 5 year total shareholder return of 67.27% points to stronger longer term momentum, which recent short term gains of around 7.6% over 90 days have only partially reflected.

    Spot opportunities with a similar mix of income, buybacks and consumer exposure by scanning our hand picked list of 6 dividend fortresses.

    Kroger now sits at an awkward crossroads. One camp points to buybacks, dividends and steady earnings; the other highlights slower recent returns. Which side does the current valuation actually support?

    Most Popular Narrative: 8.6% Undervalued

    Kroger closed at $60 while the most followed narrative on the stock assigns a fair value of $65.65. That gap frames the current debate over whether a premium supermarket chain with modest revenue growth and a heavy cost focus can still justify a higher price tag.

    The central narrative tension of the latest call is the gap between two clean stories: cost discipline working exactly as committed, and the sales line missing the guidance range. Foran’s response was to present these as compatible, a demonstration that the financial model works even when top-line conditions don’t cooperate. “These results demonstrated the strength and flexibility of our operating model in a challenging sales environment” was the direct formulation. This is a real argument, not a deflection, because the cost savings mechanism did hold. But the argument requires the listener to accept that a sales miss is a stress test passed rather than a signal worth investigating on its own terms.

    See why 1 investors see Kroger as 9% undervalued.

    Result: Fair Value of $65.65 (UNDERVALUED)

    Still, the Kroger narrative could be knocked off course if sales softness persists, or if cost savings slow and the margin story loses credibility.

    Find out about the key risks to this Kroger narrative.

    Next Steps

    If this Kroger story seems finely balanced between concern and optimism, use that combination as a prompt to quickly explore both perspectives and form your own stance by checking the 3 key rewards and 4 important warning signs.

    Looking for more Kroger style investment ideas?

    If the Kroger setup has you thinking more broadly about your portfolio, now is the time to scan for other opportunities before the next move passes you by.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.