In a year when most retail news has focused on higher costs and shoppers being more careful with their spending, Kroger (KR) has made a strong statement by announcing it will hire 15,000 new employees. This decision stands out, especially as many other retailers are cutting back because of inflation and weaker demand. The company’s stock has responded, climbing almost 29% over the past 52 weeks. That’s well ahead of the S&P 500 Index’s ($SPX) 11.2% gain in the same period.

By adding more staff when others are holding back, Kroger is not just meeting today’s needs, but also setting itself up for steady growth. This focus gives investors 15,000 clear reasons to take a closer look at this steady, dividend-paying company.

Kroger’s Financial Pulse

Kroger (KR) is a major player in the American grocery industry, running more than 2,700 stores in 35 states under several different brand names. The company’s business covers everything from regular supermarkets to larger stores with many departments, plus locations with pharmacies and fuel stations. 

In the past year, Kroger’s stock has climbed nearly 29%, and it’s up about 13% so far in 2025. Kroger’s forward price-earnings ratio is 14.5x, which is lower than the sector average of 16.49x. This means the stock is still reasonably priced compared to its peers. With a 60-month beta of 0.62x, the stock tends to be less volatile, which is attractive for investors who want stability as well as growth. 

The company’s financials back up that optimism. In 2024, Kroger brought in $147 billion in sales and nearly $2.7 billion in net income. Same-store sales (not counting fuel) rose 1.5% for the year. Digital sales topped $13 billion, and Kroger’s retail media business added more to profits. The company has also boosted pay, with average hourly wages now above $19, and started a $5 billion share buyback program to give more back to shareholders.

How Kroger’s Investments and Expansion Fuel Growth

Kroger’s growth right now comes from investing heavily in both its people and its technology. The company’s plan to hire 15,000 new workers, covering everything from cashiers and deli clerks to pharmacy techs and delivery drivers, shows a real commitment to making the shopping experience better for everyone. 

Kroger launched a dedicated e-commerce unit to consolidate all teams responsible for online shopping. Kroger is making it easier for millions of people to buy groceries online and is keeping up with big names like Walmart (WMT) and Target (TGT). 

These moves support Kroger’s strong track record with dividends. The company has paid dividends for 19 years in a row and now pays $0.32 per share each quarter, giving an annual yield of about 1.85%. While this is a bit lower than the sector average, the real story is how much the dividend has grown. Kroger has raised its dividend at a double-digit rate for more than 10 years, and with a payout ratio of about 25%, there’s still plenty of room for more increases.

What Analysts See Ahead for Kroger

Kroger expects to make an adjusted FIFO operating profit between $4.7 and $4.9 billion in 2025. The company is guiding for adjusted net earnings per diluted share coming in between $4.60 and $4.80. 

Most analysts agree with this outlook. The 20 analysts surveyed give Kroger a “Moderate Buy” consensus rating, and the average price target is $70.80, roughly in line with its current trading price. 

This tells us Wall Street thinks Kroger is fairly valued after its strong run, but there’s still room for the stock to increase if the company keeps performing. John Heinbockel at Guggenheim recently raised his price target to $73, saying Kroger’s steady business and new ways of making money are reasons to expect the company to keep doing well.

The Bottom Line on Kroger Stock 

Kroger’s decision to bring 15,000 new employees on board is a clear vote of confidence in the company’s future. With a strong financial track record, steady dividend growth, and bold investments in both people and technology, Kroger is proving it can adapt and thrive even when the market gets tough. 

For investors looking for a stable, dividend-paying stock with real staying power, Kroger’s latest moves make it hard to ignore.