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:

FLO Dividend Growth Chart


  1. 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?

    1. 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.

  2. 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.

    1. 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.

  3. 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

  4. 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!

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