Albertsons Companies Announces Common Stock Dividend

Rhea-AI Summary

Albertsons Companies, Inc. (NYSE: ACI) declares a cash dividend of $0.12 per share of common stock for the fourth quarter of fiscal 2023, payable on February 9, 2024, to stockholders of record as of January 26, 2024.

Insights

Financial Analyst

The declaration of a $0.12 per share cash dividend by Albertsons Companies, Inc. is a strategic move that directly impacts shareholder value. Dividends are a tangible return on investment and the consistency of such payments can signify the company's financial health and management's confidence in its cash flow stability. Investors often view regular dividends as a sign of a company's maturity and its ability to generate steady earnings. In the short-term, this announcement may lead to a positive sentiment among investors, potentially increasing the stock's attractiveness.

In analyzing the dividend yield, which is the dividend per share divided by the stock price, we can assess the return relative to the company's market valuation. A yield that aligns with or exceeds industry averages would be particularly notable. Additionally, the payout ratio, or the proportion of earnings paid as dividends, is crucial for evaluating the sustainability of the dividend. A ratio that is too high may indicate that the company is returning too much to shareholders at the expense of reinvesting in growth opportunities.

Market Research Analyst

From a market perspective, the dividend announcement by Albertsons may influence investor perception of the retail grocery sector as a whole. Dividends are often a reflection of not just one company's performance but also of the sector's economic environment. If Albertsons is able to maintain or increase dividends, it could suggest sector stability or resilience, which is valuable information for investors evaluating stock options within this industry.

Furthermore, the market will look at the dividend payout in the context of Albertsons' historical payout patterns and those of its competitors. A deviation from these patterns could prompt further analysis into the company's strategic priorities, such as whether it is focusing more on returning cash to shareholders or on debt reduction and expansion strategies. The timing of the payout and its relation to fiscal periods may also be scrutinized for insights into seasonal cash flow variations.

Economist

Considering the broader economic implications, the dividend payout decision by a company like Albertsons can be indicative of broader economic trends. For instance, a company increasing its dividend might be seen as a microcosmic sign of economic strength, suggesting that consumer spending is stable or growing, particularly relevant in the retail sector. Conversely, if a company reduces or eliminates its dividend, it might raise concerns about economic contraction or declining consumer confidence.

It's also important to consider the macroeconomic context, such as interest rate trends and inflationary pressures, which can affect consumer spending and savings habits. In an environment where interest rates are rising, dividends can become more attractive to income-seeking investors as an alternative to fixed-income investments. On the other hand, high inflation may erode the real value of dividend payments, affecting investor decisions.

BOISE, Idaho--(BUSINESS WIRE)-- Albertsons Companies, Inc. (NYSE: ACI) (the “Company”) today announced its Board of Directors has declared a cash dividend for the fourth quarter of fiscal 2023 of $0.12 per share of common stock. The cash dividend is payable on February 9, 2024 to stockholders of record as of the close of business on January 26, 2024.

About Albertsons Companies

Albertsons Companies is a leading food and drug retailer in the United States. As of December 2, 2023, the Company operated 2,271 retail food and drug stores with 1,726 pharmacies, 401 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Company operates stores across 34 states and the District of Columbia with 24 banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market. The Company is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2022, along with the Albertsons Companies Foundation, the Company contributed more than $200 million in food and financial support, including more than $40 million through our Nourishing Neighbors Program to ensure those living in our communities and those impacted by disasters have enough to eat.

Important Notice Regarding Forward-Looking Statements

This press release contains certain forward-looking statements. Statements that are not historical facts, including statements regarding the Company’s expectations, perspectives and projected financial performance, are forward looking statements. The words “expect,” “believe,” “estimate,” “intend,” “plan” and similar expressions, when related to the Company and its subsidiaries, indicate forward-looking statements. The forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties. The Company cautions that the risks and uncertainties could cause actual results to differ materially from those expressed or implied in the forward-looking statements. The Company also cautions that undue reliance should not be placed on any of the forward-looking statements, which speak only as of the date of this release. The Company undertakes no responsibility to update any of these forward-looking statements to reflect events or circumstances after the date of this report or to reflect actual outcomes. Certain potential factors that could affect our business and financial results and cause actual results to differ materially from those expressed or implied in any forward-looking statements are described in the “Risk Factors” section or other sections in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 25, 2023, and in reports subsequently filed with the SEC and available at the SEC’s website at www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240109326569/en/

For Investor Relations, contact investor-relations@albertsons.com



For Media Relations, contact media@albertsons.com

Source: Albertsons Companies, Inc.

FAQ

What is the cash dividend declared by Albertsons Companies, Inc. (NYSE: ACI) for the fourth quarter of fiscal 2023?

The cash dividend declared is $0.12 per share of common stock.

When is the cash dividend payable to stockholders of Albertsons Companies, Inc. (NYSE: ACI)?

The cash dividend is payable on February 9, 2024.

Who are eligible to receive the cash dividend from Albertsons Companies, Inc. (NYSE: ACI)?

Stockholders of record as of the close of business on January 26, 2024 are eligible to receive the cash dividend.