Following The Kroger Company's (NYSE:KR) first-quarter earnings report, the grocery store retailer made two additional announcements on top of its strong earnings: a $0.17-per-share dividend and a new $500 million share buyback program. While the dividend announcement comes as no surprise, and is unchanged from last quarter, the interesting move is Kroger's buyback announcement. The $500 million is on top of a $1.1 billion share buyback that the company just completed in the first quarter. With all of this money being thrown around, how can Kroger shareholders be sure that the company is acting in their best interest? Motley Fool consumer goods analyst Sean O'Reilly breaks down the facts and informs viewers what to look for in assessing just how effective a share buyback program is. 

Sean O'Reilly has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.