#4 - Kroger (NYSE:KR)
Kroger (KR)-Beta: 0.36- Dividend Yield: 2.03%
Kroger (NYSE:KR) has recently become a Warren Buffett stock. Berkshire Hathaway (BRK:B) purchased nearly 19 million shares of the grocery chain. Berkshire’s stake at the time was $549 million which means that Buffett owns more than 2.4% of the company’s outstanding shares.
I could leave this argument with just saying that Berkshire does not typically invest in companies that he doesn’t believe in. But there are more reasons to like Kroger as a conservative investment. The company last reported earnings on March 5, 2020. The report was great. And one thing to note was, at the time, the company did not adjust its guidance in the wake of the coronavirus. This was before much of the nation was asked and/or mandated to stay at home.
Kroger is making successful inroads in the digital grocery movement. An interesting initiative that Kroger is examining is a partnership with Microsoft (NASDAQ:MSFT) to experiment with digital store displays. They are also partnering with Walgreens Boots Alliance (NYSE:WBA) to have stores within each other’s stores. The company is also looking into autonomous delivery vehicles in Houston.
Kroger has a solid dividend history and has increased its dividend for the last 11 consecutive years.
About Kroger
The Kroger Co operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys.
Read More - Current Price
- $61.85
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $65.43 (5.8% Upside)
