This week I'm seeking a prestigious and long-term dividend paying stock from the consumer defensive sector. 

That defensive sector includes thirteen industries all related to providing those convenient packaged goods we've just gotta have. Industries like: beverages, brewed, soft, or distilled; confections; discount stores; education & training; farm products; food distribution; grocery stores; household & personal products; packaged goods; pharmaceutical retailers; tobacco.

Today I'm reviewing a large-cap grocery stores firm named The Kroger Co. It's trading ticker symbol is KR. 

The Kroger Co operates grocery stores. Its coverage includes retail food and drug stores, multi-department stores, jewelry stores and convenience stores.

Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce.

Multi-department stores provide general merchandise items, like apparel, home fashion and furnishings, outdoor living, electronics, automotive products, toys, and fine jewelry.

Price impact warehouse stores offer grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. 

The company's marketplace stores comprise full-service grocery, pharmacy, health and beauty care departments, and perishable goods, as well as general merchandise, including apparel, home goods, and toys.

Convenience stores comprise a limited assortment of staple food items and general merchandise, as well as selling fuel. 

KR operates under banner brands, such as Kroger, Ralphs, Fred Meyer, King Soopers, etc., as well as Simple Truth and Simple Truth Organic brands. As of March 8, 2018, the company operated 2,800 retail food stores under various banner names, as well as an online retail store. 

The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.

I use three key data points to gauge the value of any dividend equity or fund like The Kroger Co.: 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

KR Price

Kroger's price per share was $29.55 at yesterday's market close. A year ago its price was $20.19 for a gain of $9.36 per share.  

Assuming Andersons's price will trade in the range of $20 to $40 next year, Kroger's current $29.55 price could repeat its past year upside and grow $9.36 to $38.91 by late-September, 2019. 

KR Dividends

Kroger's most recent quarterly dividend was $0.14 declared September 20th and payable December 1st. That dividend was increased from $0.125 in June.  

At this most recent $0.14 quarterly pay rate, Andersons's annual dividend is calculated at $0.56 yielding 1.89% at yesterday's closing $29.55 price.

Gains For KR?

Adding the $0.56 estimated annual dividend to my repeated $9.36 annual upside for Kroger makes a $9.92  potential gross annual per share gain, which is reduced by the costs to trade the shares.  

 A little over $1,000.00 invested today at the $29.55 recent price buys 34 The Kroger Co. shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.29 per share

Subtracting that $0.29 brokerage cost from the estimated $9.92 gross annual gain leaves a net gain of $9.63 X 34 shares 

= $337.62.98

or about a 33.6% net gain on a $1,004.70 investment.

Therefore, The Kroger Co., whose trading ticker symbol is KR, now shows a possible 33.6% net gain including a 1.89% dividend yield. 

Twenty-six brokers cover this stock:

Seven say KR is a stock to "buy".

Three say KR will "outperform" its peers.

Fifteen say KR is a stock to "hold".

But one broker says "sell" KR.

Thus, the analyst recommendation number is 2.4 or "outperform".

The median price target set by those twenty-six brokers is  $8.03 under my repeating annual upside estimate to a $38.91 price target for KR. 

So, you could look at all these speculative numbers this way, The Kroger Co, whose trading ticker symbol is KR, has made money, is making money, and could net a 10% to an optimistic 33.6% net annual gain including a 1.89% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Those results will determine if The Kroger Co is worth your time and money.