The food company offers a dividend of more than 3%
Flowers Foods, Inc. (NYSE: FLO) is one of the largest manufacturers of packaged baked goods in the United States. The company operates 46 bakeries in the United States that produce a wide range of baked goods for retail and food service customers. At the last check, the equity in pre-market trading was unchanged.
Flower Foods stock offers a forward dividend of $ 0.80 and a dividend yield of 3.33%. FLO recently paid out its 74th straight quarterly dividend on March 19th. Overall, Flower Foods stock is a promising dividend option for long-term investors. The company has made it its business to give something back to its shareholders. Given the dividend history to date, investors can likely expect dividend growth every year in the future.
Flowers Foods stock price is up 20% year over year and is up 35% since hitting a 52-week low of $ 17.42. In addition, FLO is only up 2.4% since the start of the year. Flower Foods shares are currently trading just 7% below their 52-week high of $ 25.18.
Like its stock growth, Flowers Foods saw a slow but steady increase in sales. Since the 2017 financial year, FLO has increased its sales by 12%, with the 2020 financial year being the best year according to the latest calculations. Last year, Flower Foods increased sales 6.4% and total sales to $ 4.4 billion. The top investor concern for Flower Foods is its balance sheet, which currently has debt of $ 1.32 billion and cash of only $ 307.48 million. Flower Foods also posted a 7.6% decline in net income in fiscal 2020. Prior to 2020, FLO was able to increase its net profit by 9.7% between FY 2017 and FY 2019.
In recent history, FLO has exceeded expectations four out of four times in the past year. Since the first quarter of 2020, Flower Foods has consistently exceeded Wall Street’s expectations for the stock, albeit by a small margin each time. While earnings declined on a quarterly basis in the 2020 quarter, the company consistently exceeded expectations and is expected to post earnings growth for the first quarter of 2021.