Saturday, January 9, 2016

Recent Buy - Flowers Foods (FLO)

Early this week I picked up some shares of the US baker Flowers Foods (FLO). Flowers Foods is the home for some of the largest brands in the business including Wonder, and Natures Own brands. The vast distribution channel consisting of 5,200 independent distributors and warehouses nationwide has enabled Flowers Foods to become the second largest bread company in the US.

Flower Foods is looking for double-digit earnings per share expansion on an annual basis. Analysts are expecting earnings growth to be around 11% in 2016 after the bakery has worked to integrate some acquisitions it's made last year. Along with earnings growth I expect dividend growth to remain robust.

I purchased 56 shares of FLO @ $21.44 - $1200.64


Some of Flowers Foods brands


FLO Chart


FLO Basic Statistics
  • Ticker Symbol: FLO
  • Sector: Consumer Goods
  • Yield: 2.7%
  • Dividend Streak: 10 years
  • Dividend Growth 1yr: 9.0%
  • Annualized Dividend Growth 3yr: 10.6%
  • Payout Ratio: 64%
  • P/E Ratio: 19.5
  • Market cap:$4.5 Billion
  • Website: http://www.flowersfoods.com

FLO Dividend Growth Chart


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7 comments:

  1. UnknownJanuary 10, 2016 at 12:48 PM

    Interesting buy. I've never looked into this company before. The brand names they own are household names which is always good. I wonder if the latest gluten free craze has hurt any companies where flour is the key ingredient?

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    Replies
    1. Captain DividendJanuary 10, 2016 at 2:05 PM

      I think that many companies recognize there is a demand for gluten free choices. FLO has it's own line of gluten free breads under the 'Nature's Own' brand to meet that demand as well.

      Delete
  2. vivianneJanuary 10, 2016 at 2:42 PM

    I spot a "flower food" trucks awhile ago, I was wondering what its business was. Man, they are diversified, well diversified. I didn't even realized I've been using some of their product - sunbeam. Mr's Mom is loyal with the "wonder" brand.

    consumer stable is great! Thanks for sharing your purchase.

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    Replies
    1. Captain DividendJanuary 10, 2016 at 7:44 PM

      Ya I hear ya, I buy a lot of Bunny Bread here. I'm pretty loaded up on consumer staples. I really need to work on my own diversity more. All in due time I guess. Thanks for stopping by.

      Delete
  3. The Broke Dividend InvestorJanuary 11, 2016 at 10:12 AM

    Hey CD,

    That's a really good buy for the rocky market ahead. I'm hoping to buy some somewhere in the year when my core positions are filled up. Have a good one

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  4. kevFebruary 10, 2016 at 1:11 PM

    Hey CD, Flower flood seems like an interesting stock. The seems to be a household name in its category which make it a safe stock with good dividends.Flower Foods is looking for double-digit earnings per share expansion on an annual basis. My only problem with this stock that don’t think it going to keep doing so well in this rocky market. Besides that great work!

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  5. Happy Healthy and Wealthy GirlFebruary 26, 2016 at 8:41 AM

    thanks for sharing! I definitely will add this stock to my watch list!

    ReplyDelete

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