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Kroger: The World Might Be Ending, But Not Before A Dividend Increase And A $1 Billion Share Buyback

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About: The Kroger Co. (KR)
by: Sure Dividend
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This post was written by Bob Ciura for Sure Dividend on June 23, 2017

If you were to base your investment decisions solely on the news headlines, you might be convinced that Kroger (NYSE:KR) is going out of business. In fact, Kroger's stock lost one-third of its value... in two trading days.

First, Kroger announced lower 2017 earnings guidance in its first-quarter results. This caused the stock's price to tumble. The next trading day, Amazon.com (NASDAQ:AMZN) announced its $14 billion pending takeover of organic grocer Whole Foods Market (WFM), which caused Kroger's stock price to fall further.

Investors fear that what Amazon did to department stores - undercutting them on price to take market