Sunday, August 21, 2016

Recent Buy - Flowers Foods (FLO)

I wanted to post an update since it's been a while since I've posted. Last week I had my eye on Flowers Foods again, and my timing couldn't have been worse. I purchased right before earnings were announced and the shares were punished afterwards as the company adjusted lower guidance than previously hoped. Compounding matters further was litigation news concerning the drivers which hammered the stock even further. I let the dust settle and made another purchase which brought my average price down quite a bit.

Flowers Foods is a company that has been around for decades and will be around for many more assuming they are not purchased by a larger food giant. I do not feel that the legal issues with the drivers will hurt FLO much even if they lose the judgments and they will come back stronger once they put this matter behind them.

Last week I purchased 157 more shares of the US baker Flowers Foods for a total of $2584.34 which is an average of $16.46/share.

Flowers Foods (NYSE: FLO), is a bakery which was opened by the Flowers family in 1919 and is now one of the largest producers of packaged bakery foods in the United States. FLO is the home for some of the largest brands in the business including Wonder, and Natures Own brands and is the second largest bread company in the US.




FLO Stock Chart

FLO Basic Stats
  • Ticker Symbol: FLO
  • Sector: Consumer Goods
  • Yield: 4.2%
  • Dividend Growth Streak: 10 years
  • Annualized Dividend Growth 3yr: 10.6%
  • Payout Ratio: 67%
  • P/E Ratio: 15.7 (forward)
  • Market cap:$3.15 Billion
  • Website: http://www.flowersfoods.com

FLO Financial Growth


FLO Dividend Growth

20 comments:

  1. Nice buy Captain! We currently have our eye on FLO. It certainly has been a popular buy among the DGI community. Completely understandable when it is currently trading at almost a 50% discount from its 52-week high of $27.31!

    Thanks for sharing. AFFJ

    ReplyDelete
    Replies
    1. No doubt there's a bit of a fire sale going on here. The shares are looking good at this price, heck I thought they looked good a couple weeks ago.

      Delete
  2. I've been seeing lots of purchases of FLO so maybe it's time I take a closer look at the company. I like to see that 15 handle on the PE ratio, even if it is a forward PE, because many of the consumer staples companies are trading in the mid-20 range without the growth to justify it.

    Looks like a good buy for you Captain.

    ReplyDelete
    Replies
    1. Sure, they experts keep saying it's investors hungry for yield looking for safety and buying these consumer names as well as utilities. Consumer staples and utilities have had some considerable growth this year no doubt. FLO is looking cheap however.

      Delete
  3. Glad to see you are still adding to your position as I just initiated a position this week!

    -TDM

    ReplyDelete
    Replies
    1. I see that, along with 2 other buys as well. You've been busy over there.

      Delete
  4. CD,

    Nice work! It's ok on the price, continue to stick to your strategy. I'll have to read more articles on FLO, as like everyone, I've been following as well. Congrats on the massive purchase!

    -Lanny

    ReplyDelete
    Replies
    1. Thanks Lanny, I'd love to hear what you and Bert think about it some time. Thanks for the visit!

      Delete
  5. I don't have anywhere anywhere near your bankroll (as I'm just starting out), but have recently purchased shares of FLO as well. I love bargain shopping.

    ReplyDelete
    Replies
    1. We all have to start somewhere, looks like you have some CMP as well. I was thinking about adding to my position there also. I appreciate you adding me yo your blogroll, I'll add you to mine as well. Best of luck!

      Delete
  6. Glad to be a fellow shareholder with you CD.
    I like this company and it's nice adding a consumer staple to our portfolio. Rarely do this sector goes below 20 P/E and we are getting FLO at a discount for sure. It's a long term hold for sure and we can enjoy the 4 plus dividend while we wait.
    Happy for your purchase and don't stop! Take care bro.

    ReplyDelete
  7. Maybe Flour is your Kryptonite ;-). Not to worry sir. You'll be fine in the long run. You could sell covered calls at $17.50 or puts at $12.50 to offset your cost basis; or just wait it out. Either way, I think you're good here.

    ReplyDelete
  8. I've been keeping my eye on FLO for a while now and have been meaning to purchase it when it went on discount. Never pulled the trigger though. Excellent buy CD!

    ReplyDelete
  9. I am watching FLO and I like this stock. My only concern is what they reduced 1 year target to 14.33, this is the only reason I am still thinking... Thanks for sharing.

    ReplyDelete
  10. Interesting buy, Captain Dividend! I recently looked at FLO but haven't yet pulled the trigger. Thanks for sharing!

    ReplyDelete
  11. Just bought some yesterday if it drops even more i might have to pull the trigger again just have to wait and see
    https://dividendsandhobbies.wordpress.com/
    Doug

    ReplyDelete
  12. Nice buy Cap. I am baffled why they don't show in my screen based on the info you have above. I will have to check them out.
    Happy investing,
    DFG

    ReplyDelete
  13. I like it.

    FLO is a great company with a very solid history

    ReplyDelete
  14. Captain,

    Nice buy, I just start buy FLO last two weeks at small amount. I like this company long term.

    DP

    ReplyDelete
  15. They added a few stem of green leaves for decoration – to the beautiful pre-made bouquets. I feel deeply blessed to run into this Florist Delivery and bought this amazing bouquet at such a reasonable price!

    ReplyDelete