One of the Dividend Stocks with Sustainable Payout Ratios

From Yahoo Finance: 2025-04-19 15:18:00

Investors continue to favor dividend-paying stocks, with US domestic common stocks seeing a net dividend increase of $15.3 billion in Q1 2025, up from $11.7 billion in the previous quarter. Dividend cuts dropped to $15.6 billion from $25.2 billion in the prior 12-month period, signaling a positive trend in dividend payments.

Data from S&P Dow Jones Indices showed that 758 companies raised or initiated dividend payments in Q1 2025, totaling $19.5 billion for the quarter. Despite a slight decline in the number of companies compared to the previous year, the total value of dividend increases edged past the previous year’s figure. Analysts are positive on dividend stocks, given US companies’ strong cash reserves, which could drive stronger-than-expected dividend growth in 2025.

The Kroger Co. (NYSE:KR) ranks fifth on the list of best dividend stocks with sustainable payout ratios. In fiscal Q4 2025, the company reported $34.3 billion in revenue, with Alternative Profit Businesses delivering $1.35 billion in operating profit. Kroger’s strong cash position, low payout ratio of nearly 33% over the past five years, and consistent dividend growth make it a reliable choice for investors.



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