Current Report: Flowers Foods (FLO)

Flowers Foods Inc bears the ticker symbol FLO, and  this is my first mention of Flowers for my new Viking Portfolio.  However I have  previously selected FLO for one or  more of my previous seven Dog of The Week Portfolios; the most recent article was 13 months ago.

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

Flowers' product portfolio includes fresh breads, buns, rolls, snack cakes, and tortillas.

The company distributes its products through a direct-store-delivery and a warehouse delivery system, and operates 46 bakeries comprising 44 owned and two leased.

Flowers customers include supermarkets, convenience stores, and restaurants. The key brands are Nature's Own, Whitewheat, Cobblestone Bread, Wonder, Dave's Killer Bread, Canyon Bakehouse, Mrs. Freshley's, and Tastykake.

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.

Three key data points gauge Flowers Foods Inc:

(1) Price (2) Dividends (3) Returns

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

FLO Price

Flowers’ price per share was $29.28 at Thursday’s market close. And, in the past year, FLO’s share price rose by $3.28 or about 12.6%.

If Flowers’ stock trades in the range of $24.00 to $32.00 this next year, its recent $29.28 share price might reach $30.00 by next year. My upside increase estimate of $0.72 is $0.67 over the median of one year price target estimates from six analysts.

FLO Dividends

Flowers’ most recently declared quarterly dividend of $0.22 per share, equals $0.88 annually and casts an annual yield of 3.01%.

FLO Returns

Adding the $0.88 annual estimated FLO dividend to my one-year price upside estimate of $0.72 reveals a $1.60 potential gross gain per share.

At Thursday’s $29.28 closing price, a little under $1000 would buy 34 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.29 per share.

Subtract that maybe $0.29 brokerage cost from my estimated $1.60 gross gain makes a net gain of $1.31 X 34 shares = $44.54 for a 4.5% net gain including a 3.01% annual dividend yield.

In one year our $1K investment in shares of Flowers Foods Inc would generate $30.10 in cash dividends. Of course, a single share of FLO stock at Thursday's $29.28 price is over $0.80 less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is the time to buy FLO’s shares based on their dividends for the coming year 2023. The current dividend from $1K invested is $0.82 more than Flowers’ single share price. Consider yourself alerted.

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 market value.


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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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