Flower Foods' Dividend and Sales Bloom

I developed an interest in Flower Foods (FLO) some time back but did not follow up on further research. It was nice to get the email announcing that the company is increasing the dividend by 17%. This comes on a sales increase of 19% in the most recent quarter.

Management is projecting 2009 profits of $1.37 to $1.48 per share. That gives plenty of coverage for the 70¢ annual dividend. I am surprised that the shares are trading not very far above the recent low set in March. Since that time the over all market is up more than 30% and FLO has gained only 4%.

Again, this is not a stock I own or follow, but it seems like a pretty good value from the recent earnings report and the dividend increase.

Comments

[fortypercent:]

FLO comes up as one of my "bottom fish" , but right now does not seem like a time to put new money after bottom fish. March was a better time to fish. someone with a really long-term horizon and not fancying themselves a trader might go for FLO? then again, one might see 30% capital gain and the 3% dividend as 33% total return very attractive. someone might wait a year

May 31 01:33 PM

[Mark Krieger:]

it is time to purchase FLO, becuase it has gotten cheap again by selling off by more than 33% from its 52 week high. The fact that it is buying back its own shares, increasing its dividend and generating substantial revenue growth is simply icing on the cake.


On May 31 01:33 PM fortypercent wrote:

> FLO comes up as one of my "bottom fish" , but right now does not
> seem like a time to put new money after bottom fish. March was a
> better time to fish. someone with a really long-term horizon and
> not fancying themselves a trader might go for FLO? then again, one
> might see 30% capital gain and the 3% dividend as 33% total return
> very attractive. someone might wait a year

May 31 03:10 PM