approved a 1.45 percent increase in the annual indicated dividend to $0.70 per share from last year's level of $0.69 per share.

a 1.45 percent increase in the annual indicated dividend to $0.70 per share versus last year's $0.69 per share. They also approved a buyback of up to $70 million of the company’s common stock.

MacAllaster: My second stock is Supervalu . It closed Friday [Jan. 2] at 14.88. The 12-month range has been 35.91 to 8.59. The company runs both wholesale and retail grocery operations. They've got the third-largest grocery chain in the U.S., after Wal-Mart Stores [WMT] and Kroger [KR]. Supervalu pays a dividend of 69 cents and yields 4%-plus. Book value per share is $29, just about double the stock price. [The company wrote down goodwill and intangible assets when it reported earnings Jan. 7. Book value is now around $16 a share.] Sales are flat to down in retail and positive in wholesale. Earnings were $2.76 a share in fiscal 2008, ended February, and should be about $2.75 for fiscal '09. The stock sells for five times earnings. Debt is high due to the purchase of the Albertsons grocery chain in 2006, but the company has been paying down between $400 million and $500 million a year. [It announced Jan. 7 that it would pay down $600 million in fiscal 2010.] Sales are about $45 billion.

From a recent Mad Money show: "No, no. If we're recommending a supermarket, we're going with Kroger (KR) who's got better margins and is a better company."

Pays dividend, low volatility

Grocery store operator Supervalu Inc. said recently its board authorized the repurchase of up to $70 million in stock from time to time.

The company plans to fund purchase primarily with the cash generated from the settlement of stock options.

The authorization program replaces the existing $235 million share repurchase program authorized in April 2007. About 5 million shares were purchased through Feb. 23 under that plan, according to a company spokeswoman.

The stock trades for 6x cash flow.

1.47%

After taking a pounding in recent months, the shares could climb by 20% to 25% as Supervalu reaps the benefits of store remodelings and other initiatives.

growth

Theo Albrecht
(16)

supermarket people have to eat low pe