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.
- Stock Buy – Flowers Foods FLO by Investment Hunting
- Recent Buy - Flowers Foods (FLO) by Captain Dividend
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!
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!
ReplyDeleteGreat buy, I bought the same =)
ReplyDeleteIt seems like all my Divi Bros are buying FLO.
ReplyDeleteIt's a great company with a great track record. This will be a good company for years to come.
Me too me too me too! :D 150 shares @ $14.99. But I doubled the bets; I sold PG today *smoking*
ReplyDeleteToo much excitement causes typos...FLO price was $14.59
Delete(Guys really...I bought today 300 FLO shares at $14.59. I hope this time everything matches :D)
DeleteGood buy i bought some also glad to be a fellow shareholder.
ReplyDelete