Thursday, September 1, 2016

Recent Buy - Flowers Foods, Inc. (FLO)

August 25, I Bought 125 shares of  Flowers Foods, Inc. at $ 15.05 per share plus commission.

Flowers Foods, Inc. produces and markets bakery products in the United States. It operates through two segments, Direct-Store-Delivery (DSD) and Warehouse Delivery. The DSD segment produces and markets fresh bakery foods, including fresh breads, buns, rolls, tortillas, and snack cakes. This segment offers its products under the Natures Own, Wonder, Whitewheat, Cobblestone Bread Company, Tastykake, Home Pride, Merita, Dave's Killer Bread, Country Kitchen, and Roman Meal brand names, as well as markets franchised and licensed brands, such as Sunbeam, Bunny, and Holsum. It operates 39 bakeries, as well as sells its products through DSD route delivery model to retail and foodservice customers. The Warehouse Delivery segment produces snack cakes, breads, and rolls for national retail, foodservice, vending, and co-pack customers. It operates 10 bakeries. This segment markets its products under the Mrs. Freshleys, European Bakers, Broad Street Bakery, and Alpine Valley Bread Company brand names. The company was formerly known as Flowers Industries and changed its name to Flowers Foods, Inc. in 2001. Flowers Foods, Inc. was founded in 1919 and is headquartered in Thomasville, Georgia.

FLO is a Dividend Contenders with a 15 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 17.0, 10.6 , 10.5 and 17.5. (DividendChampions.xls) After the last dividend increase declaration, Flowers Foods, Inc. now pays dividends of $ 0.16 per share normally in March, June, September and December. 

After the most recent earnings report on August 10, the share price collapsed from around 18 to the present price around 15. There are two possible reasons for the price drop. One is that although the company hit its earnings expectation, it missed slightly on revenue, and shaded down its forecast for the full year. The other, much more salient reason for the large price drop is that Flowers Foods is under investigation by the Department of Labor.

This price drop caused it that many DGI bloggers pushed the purchase button. Here are a few links.

If you are interested, you can read the latest analysis of Flowers Foods by by Ben Reynolds at Sure Dividend here

Details of my purchase:

 Some ratings for FLO:

    Yahoo:  Mean Recommendation 3.0, 1y Target Est $ 14.33
    Reuters: Mean Rating 3.00

At today's exchange rate, this purchase 125 shares of FLO will increase € 53.23 ($ 59.60) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 9,100.00. With purchase price $ 15.05 plus commission ($ 5.00) my starting yield on cost is 4.24%.

Click here to see my portfolio.

Full Disclosure: Long FLO  

Thanks for stopping by!


  1. So many people buying FLO recently! I'm jealous of your entry point, I wish I had better timing. Thanks for the update and the mention!

  2. It seems like all my Divi Bros are buying FLO.

    It's a great company with a great track record. This will be a good company for years to come.

  3. Me too me too me too! :D 150 shares @ $14.99. But I doubled the bets; I sold PG today *smoking*

    1. Too much excitement causes typos...FLO price was $14.59

    2. (Guys really...I bought today 300 FLO shares at $14.59. I hope this time everything matches :D)

  4. Good buy i bought some also glad to be a fellow shareholder.