Recent Buy – Flowers Foods
On July 16th I published an article on Seeking Alpha about Flowers Foods. Then on August 10th I added Flowers Foods to my Watch List. Even though I had added the company to my watch list I knew that there was a lot of volatility around the stock. So I was patiently waiting for the right time. Earlier this week Flowers Foods released their earnings report and it disappointed a lot of investors. For me though I decided that the time was finally right.
I am now able to remove Flowers Foods off my Watch list because I acquired 32 shares of the company. This worked out to a cost basis of $15.63 per share. I know that there is still plenty of volatility around the company and that the share price may go lower but I think it is a great company that will prove to be a great holding for me over the long term. All of the reasons that I stated in my Seeking Alpha article still stand true so I see no reason to rehash it all here. If your interested you can just click the link above to go read the article. If the share price does drop more I would be very happy to acquire more shares at a cheaper cost basis.
Also I updated my Portfolio page to reflect the addition and I will be updating my Dividend Income page very soon.
What do you guys think? Did I make a good purchase? Have you been thinking about picking up some shares? Please leave me some comments below and let me know what you think?
Nice buy — congratulations! I recently looked at FLO. Nice yield (4.19%) and great 10-yr DGR of 17.5%. And its trading about 10% below my fair value estimate.
FerdiS recently posted…10 Dividend Growth Stocks For August 2016
Yeah. I imagine there will be volatility around the stock until they resolve their litigation issues with their drivers.
I am looking at it as a long term play because I don’t see the world not eating bread in 10 or 20 years.
I hope things have been going well for you! Thanks for stopping by!
VERY popular stock among DGI investors lately! There is certainly a nice risk/reward ratio here. We like the long-term prospect of FLO…it’s even better when you can collection a decent dividend while you wait for the stock price to recover. We haven’t initiated a buy yet but FLO is high on our watch list.
Thanks for sharing, Best wishes and continued success on your personal finance journey! AFFJ
Yeah FLO was on my Watch List for awhile. I felt the price was too good to pass up. With the continued volatility if it goes even lower I will gladly buy more! I appreciate your kind words and I hope you much success on your financial journey. Thanks for stopping by!
Nice buy MD, FLO is one stock that I’m seeing popping up EVERYWHERE. Hopefully it’s a good one for you – certainly a nice starting yield 🙂
Tristan
Dividends Down Under recently posted…Saving for the future: August 2016
Yeah I think over the long term this will prove to be a pretty good entry point. Only time will tell. Thanks for stopping by!