CINCINNATI — Kroger Co., the largest U.S. supermarket chain and the biggest company with public stock in Ohio, has approved its first stock split in 16 years and a 13.5 percent dividend increase, saying it reflected the board’s confidence in its growth prospects.

In addition to the 2-for-1 split, the supermarket chain on Thursday said it would pursue a new $500 million stock buyback program.

The company has made $11.7 billion in share repurchases since 2000.

In splitting its stock, Kroger is pursuing an increasingly rare strategy.

Splits reached their apex in the 1990s when companies sought to broaden their appeal to individuals by having lower-priced stocks.

Now that institutional investors and exchange-traded funds dominate the market, there’s less need to take the step.

In Kroger’s case, a desire to make the stock more accessible to its employees figured into the decision.

The company employs almost 400,000 associates in thousands of supermarkets.

Kroger’s stock price had climbed above $70 in recent months, potentially making it hard for some to afford.

“The stock split will increase the accessibility of our shares,” Chairman and Chief Executive Officer Rodney McMullen said.

This marks the fifth stock split for Kroger since it previously did so in 1979, 1986, 1997 and 1999.

The dividend increase will boost its payout to 21 cents on a pre-split basis, as predicted by analysts.

Shareholders on record as of Aug. 14 will be paid 10.5 cents — the split-adjusted amount — on Sept. 1.

First Published June 26, 2015, 4:00 a.m.