Dividend Increase – Flower Foods (FLO)

Dividend Increase Announcement

On May 24th, Flowers Foods announced a dividend increase of 5.9%. This will increase their dividend per Quarter from $0.17 to $0.18. It is payable on June 21st for shareholders of record on June 7th. The new monthly dividend represents an annualized dividend amount of $0.72 per share as compared to the current annualized dividend amount of $0.68 per share.

Flowers Foods Dividend Information

Annual Dividend: $0.72
Dividend Yield: 3.59%
Payout Ratio: 67.3%
Dividend Growth History: 12 years

Dividend Increase Effect On More Dividends

I am currently holding 34.056 shares of Flowers Foods. With this 5.9% increase it will add $1.36 to my Projected Annual Dividend Income.

Conclusion

Yesterday, Flowers Food gave a nice little increase to their dividend. I was lucky enough to invest at a time when Flowers Foods was dealing with a lot of litigation so I was able to start a position while their stock was on sale. I have not added onto that original position but it has been considered several times.

Something that I still really like about the business is the fact that their core business is bread. It doesn’t matter if the economy is doing good or if we are in a recession everyone eats bread. Its that simple. The company offers a product that people will consume.

Now since I started my position I do like the fact that management has been working to increase there profit margin. If everyone is going to consume your product, why not try and make as much money off of it as possible.

I still really like the company but am not looking to add to the position unless the share price gets back down close to my cost basis.

Regardless of how large or small, I love all dividend increases. That is how we end up with More Dividends 😉

Do you currently hold any stock in Flowers Foods? What do you think of this dividend increase? Just let me know in the comments.

As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com

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