Kroger (NYSE: KR) declared a quarterly dividend of $0.125 per share, or $0.5 annualized.

The dividend will be payable on June 1, 2018, to stockholders of record on May 15, 2018, with an ex-dividend date of May 14, 2018.

The annual yield on the dividend is 2.1 percent.

Kroger today also announced an incremental $1 billion share repurchase program, supplementing the current authorization, which had approximately $76 million remaining as of March 13, 2018.

"Kroger's share repurchase authorization reflects our Board of Directors' confidence in Restock Kroger and our ability to generate long-term value for shareholders," said Rodney McMullen, Kroger's chairman and CEO. "Kroger has delivered double-digit compound growth in its dividend since it was reinstated in 2006. Over the last four quarters, Kroger has returned more than $2.1 billion to shareholders through share buybacks and dividends combined."

Under the repurchase program, Kroger is authorized to repurchase its outstanding common shares from time to time in open market or privately-negotiated transactions, including accelerated share repurchase transactions, block trades, or pursuant to trading plans intended to comply with SEC Rule 10b5-1. The share repurchase program has no expiration date but may be suspended or terminated by the Board of Directors at any time.

The company expects, subject to board approval, to have an increasing dividend over time.

Kroger's financial strategy is to use its free cash flow to drive growth while also maintaining its current investment grade debt rating and returning capital to shareholders.

For a dividend history and other dividend-related data on Kroger (KR) click here.