Daily Stock Analysis: Flowers Foods - Wednesday, January 13

The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its nineteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we look at a mid-cap packaged food company named Flowers Foods Inc. Its trading ticker symbol is FLO. This is my second report on Flowers Foods Inc for Vista. It was selected for my Volio folio five.

bread on brown wooden table

Source: Unsplash 

Flowers Foods Inc is an American company producing bakery food for retail and foodservice across the United States. 

The product portfolio includes fresh bread, buns, rolls, snack cakes, and tortillas. The company distributes to supermarkets, convenience stores, and restaurants. 

The operating segments are divided into direct store delivery, which provides fresh bread, tortillas, cakes, and rolls; and the warehouse segment, which distributes fresh snack cakes and frozen bread and rolls. 

The key brands are Nature's Own, Whitewheat, Cobblestone Bread, Wonder, Tastykake, and Dave's Killer Bread.

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.

I use three key data points to gauge dividend equities or funds like Flowers Foods Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

FLO Price

Flowers's price per share closed at $21.92 yesterday. A year ago its price was $21.94. Price stayed about even with last year.

If Flower's stock trades in the range of $18 to $28 this next year, its recent $21.92 price might rise by $3.08 to reach $25.00 by January 13, 2022. 

FLO Dividends

Flowers's most recently declared quarterly dividend was $0.20 paid December 11th. Dividends are estimated to total $0.80 per share annually and yield 3.65% at yesterday's $21.82 closing price.

FLO Gains?

Adding the $0.80 annual Flowers's anticipated dividend to my $3.08 optimistic price upside shows a $3.88 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Flowers Foods Inc at $21.92 per share and we'd buy 46 shares of FLO stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.22 per share.

Subtract that maybe $0.22 brokerage cost from my estimated  $3.88 gross gain per share results in a net gain of $3.66 X 46 shares = $168.36 for a 16.8% net gain on a $1,008.32 investment.

So it goes that Flowers Foods Inc shows a possible  16.8% net gain including a 3.65% dividend yield. It could be more, it could be less.    

All of the estimates above are speculation based on the past history of Flowers Foods Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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