5 Best Organic Food and Farming Stocks To Buy

3. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 43

The Kroger Co. (NYSE:KR) is an Ohio-based grocery retailer that operates online and in supermarkets, drug stores, department stores, and more. The company sells food items and non-food products. It is one of the best organic food and farming stocks as it not only sells organic food items but also has an organic brand known as Simple Truth which sells products that are USDA organic certified.

On September 14, The Kroger Co. (NYSE:KR) declared a $0.29 quarterly dividend that is payable by December 1 to the shareholders of record on November 15. As of October 28, the company’s dividend yield is 2.61%.

In Q2, out of the 910 elite hedge funds tracked by Insider Monkey, 43 held a stake in The Kroger Co. (NYSE:KR) with a combined stake value of $3.14 billion.

Oakmark Funds mentioned The Kroger Co. (NYSE:KR) in its third quarter 2023 investor letter. Here is what it said:

“The Kroger Co. (NYSE:KR) 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. However, we believe the company’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 has the potential to drive accelerated earnings growth and further scale advantages. If the merger is not approved, the company will have the capacity to return approximately 25% of its market cap to shareholders.”