5 Best Cheap Dividend Stocks to Buy

3. The Kroger Co. (NYSE:KR)

Forward P/E as of April 9: 13.85

On April 2, Erste Group initiated coverage on The Kroger Co. (NYSE:KR) with a Buy rating. The analyst said Kroger is in the middle of a transformation strategy. It expects profits to grow at a stronger pace than last year.

In its Q4 2025 earnings report, the company said it completed its eCommerce strategic review. This is expected to deliver $400 million in eCommerce operating profit improvement in 2026 and create a path toward profitability. Kroger also reported $1.5 billion in operating profit from its alternative profit businesses. It generated strong adjusted free cash flow during the period.

The company completed a $7.5 billion share repurchase authorization. This included a $5 billion accelerated share repurchase program and $2.5 billion in open market transactions. The board also approved an additional $2 billion buyback authorization. Kroger appointed Greg Foran as Chief Executive Officer.

The Kroger Co. (NYSE:KR) is a food and drug retailer. It operates supermarkets, multi-department stores, and fulfillment centers across the United States. The company runs about 2,731 supermarkets, 2,273 pharmacies, and 1,702 fuel centers in more than 35 states and the District of Columbia, along with an online platform that supports an omnichannel shopping experience.