Thursday, June 2, 2022

Dividend Increase - Flowers Foods, Inc. (FLO)



Thursday, May 26th the Board of Directors of Flowers Foods, Inc. (FLO) announced a quarterly dividend increase of from $ 0.21 to $ 0.22 per share that’s payable June 23, 2022 to holders of record June 9, 2022. This represents a 4.76% increase over the last quarterly dividend.


With current price $ 26.46 (today's open), this raise brings their dividend yield to 3.33%.


In other actions, the board increased the company's share repurchase authorization by 20 million shares. At the close of the company's first quarter on April 23, 2022, 5.4 million shares remained under the existing authorization. With the board's action today, the current authorization increases to 25.4 million shares, affording ample repurchase capacity as the company continues to execute its growth plan and maintain balance sheet discipline.


"I am pleased to announce the board's decision to increase the dividend and share repurchase authorization, which reflects our confidence in Flowers' growth prospects and balance sheet strength," said Ryals McMullian, Flowers Foods president and CEO.


Flowers Foods is a Dividend Contenders with a 21 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 5.1, 5.3, 5.8 and 7.9 (Dividend Champions.xls)



Since I own 185 shares of FLO, this will increase my portfolio's projected annual net dividend income by $ 5.51.


This increase was in line with my expectations.


This is the sixth dividend increase I've received from Flowers Foods, Inc. since initiating a position in August 2016. (More here) During this period, the quarterly dividend has risen moderately from $ 0.16 to $ 0.22, or 37.5 percent.


This increase raises my YOC to 5.75%.



Summary of 2022 Dividend Increases / Cuts



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long FLO


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