The Kroger CoLTS:0JS2 +3.71%69 5-Year Yield-on-Cost % is 5.07 as of Jul. 03, 2026, which is 31% above its 10-year median of 3.86. GuruFocus rates LTS:0JS2 with a GF Score™ of 69/100 and a GF Value™ of $66.89 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 195 Retail - Defensive companies, The Kroger Co ranks better than 70.26% on this metric.
The Kroger Co's yield on cost for the quarter that ended in Apr. 2026 was 5.07.
The historical rank and industry rank for The Kroger Co's 5-Year Yield-on-Cost % or its related term are showing as below:
LTS:0JS2'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.17 Med: 3.86 Max: 5.11
Current: 5.07
During the past 13 years, The Kroger Co's highest Yield on Cost was 5.11. The lowest was 2.17. And the median was 3.86.
LTS:0JS2's 5-Year Yield-on-Cost % is ranked better than 70.26% of 195
companies
in the Retail - Defensive industry
Industry Median: 3.58
vs LTS:0JS2: 5.07
The Kroger Co (LTS:0JS2) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
The Kroger Co 5-Year Yield-on-Cost % Related Terms
LTS:0JS2 vs SFM, ACI, WMK: 5-Year Yield-on-Cost % Comparison
For the Grocery Stores subindustry, The Kroger Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Kroger Co 5-Year Yield-on-Cost % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where The Kroger Co's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of The Kroger Co is calculated as
The Kroger Co (LTS:0JS2) has a 5-Year Yield-on-Cost % of 5.07 as of Jul. 03, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on The Kroger Co and its competitors. This is 31% above median its historical median of 3.86. Over the past decade, The Kroger Co's 5-Year Yield-on-Cost % has ranged from 2.17 to 5.11. According to the industry distribution chart, The Kroger Co ranks #58 out of 195 companies in the Retail - Defensive industry, placing it in the top 29.7%.
Is The Kroger Co's 5-Year Yield-on-Cost % too high?
The Kroger Co's current 5-Year Yield-on-Cost % of 5.07 is 31% above median its 10-year median of 3.86. Over the past 10 years, this metric has ranged from a low of 2.17 to a high of 5.11. The Retail - Defensive industry median 5-Year Yield-on-Cost % is 3.58. The Kroger Co's value of 5.07 is 41.6% above this industry median. Based on the distribution chart, The Kroger Co ranks #58 out of 195 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, The Kroger Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Kroger Co's 5-Year Yield-on-Cost % compare to SFM and ACI?
According to the Retail - Defensive industry distribution chart, The Kroger Co ranks #58 out of 195 companies for 5-Year Yield-on-Cost %. This puts The Kroger Co in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.58. The Kroger Co's value of 5.07 is 41.6% above this benchmark. Historically, The Kroger Co's own 5-Year Yield-on-Cost % has ranged from 2.17 to 5.11 over the past decade. While the company's 10-year median is 3.86 vs. the industry median of 3.58, The Kroger Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Retail - Defensive company?
The median 5-Year Yield-on-Cost % among Retail - Defensive companies is 3.58, based on 195 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kroger Co's current 5-Year Yield-on-Cost % of 5.07 is 41.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on The Kroger Co and its competitors. For the Retail - Defensive industry, the median 5-Year Yield-on-Cost % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kroger Co's current 5-Year Yield-on-Cost % is 5.07, which is 31% above median its own 10-year median of 3.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Kroger Co stock overvalued right now?
Based on GuruFocus' analysis, The Kroger Co (LTS:0JS2) is currently considered Modestly Undervalued. The stock's GF Value™ is $66.89, compared to a current price of $57.58 — trading 13.9% below its estimated fair value. The current 5-Year Yield-on-Cost % is 5.07, which is 31% above median its 10-year median of 3.86 and 41.6% above the Retail - Defensive industry median of 3.58. The Kroger Co's overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For The Kroger Co (LTS:0JS2), the current 5-Year Yield-on-Cost % is 5.07 as of Jul. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Kroger Co (LTS:0JS2) Overvalued in 2026?
Based on GuruFocus' analysis, The Kroger Co stock appears to be undervalued.
The current stock price of $57.58 is trading 13.9% below its estimated GF Value™ of $66.89.
GuruFocus considers The Kroger Co to be Modestly Undervalued.
Key valuation signals for LTS:0JS2:
5-Year Yield-on-Cost %: 5.07 (31% above median its 10-year median of 3.86)
GF Value™: $66.89 vs. price of $57.58 (13.9% below fair value)
Industry Position: 41.6% above the Retail - Defensive median (#58 of 195)
No single metric tells the full story. See the LTS:0JS2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1883, Kroger is the largest pure-play supermarket operator in the United States, operating roughly 2,700 stores across more than 30 banners. Kroger's business is primarily grocery-led (roughly 78% of sales), spanning fresh food and private-label offerings, complemented by fuel centers (9%) and pharmacies (12%). The firm also generates income from advertising, data analytics, and manufacturing.
69GF Score
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