5 Best February Dividend Stocks To Buy

In this article, we discuss 5 best February dividend stocks to buy now. If you want to read our detailed analysis of dividend stocks and dividend capture strategy, go directly to read 12 Best February Dividend Stocks To Buy. 

6. The Kroger Co. (NYSE:KR)

Ex-Dividend Date: February 14

The Kroger Co. (NYSE:KR) is one of the largest supermarket chains in the US and one of the world’s largest grocery retailers. On January 19, the company announced a quarterly dividend of $0.29 per share, which was in line with its previous dividend. Overall, it maintains a 17-year streak of consistent dividend growth, which makes KR one of the best dividend stocks on our list. The stock’s dividend yield on January 28 came in at 2.51%.

Of the 910 hedge funds tracked by Insider Monkey at the end of Q3 2023, 41 funds held investments in The Kroger Co. (NYSE:KR), down from 43 in the previous quarter. These stakes are collectively worth over $3 billion.

Oakmark Funds mentioned The Kroger Co. (NYSE:KR) in its Q4 2023 investor letter. Here is what the firm has to say:

“The Kroger Co. (NYSE:KR) (U.S.) is the second-largest grocery retailer in America, behind only Walmart. Although the grocery industry is highly competitive, Kroger’s scale advantages allow it to offer a more compelling value proposition than smaller peers and earn higher returns on capital. In recent years, the market has assigned Kroger a lower multiple due to concerns that e-commerce would disrupt traditional brick-and-mortar grocery businesses. However, we believe Kroger’s performance through the pandemic highlighted that its store footprint, distribution infrastructure, technology investments and strong brand all position the company well for a world with higher online grocery adoption. The stock trades for just 10x our estimate of next year’s EPS, which we believe is attractive given Kroger’s competitive positioning and earnings growth outlook. The pending merger with Albertsons could accelerate the company’s earnings growth and produce additional scale advantages. If the merger is not approved, the company will have the capacity to return over 25% of its market cap to shareholders.”