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Why NYSE:FLO qualifies as a good dividend investing stock.

By Mill Chart

Last update: Jul 9, 2024

FLOWERS FOODS INC (NYSE:FLO) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:FLO demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

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ChartMill's Evaluation of Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:FLO was assigned a score of 7 for dividend:

  • With a Yearly Dividend Yield of 4.38%, FLO is a good candidate for dividend investing.
  • FLO's Dividend Yield is rather good when compared to the industry average which is at 3.75. FLO pays more dividend than 89.01% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 2.38, FLO pays a better dividend.
  • The dividend of FLO is nicely growing with an annual growth rate of 10.15%!
  • FLO has paid a dividend for at least 10 years, which is a reliable track record.
  • FLO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Understanding NYSE:FLO's Health Score

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:FLO, the assigned 5 for health provides valuable insights:

  • An Altman-Z score of 3.58 indicates that FLO is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of FLO (3.58) is better than 78.02% of its industry peers.
  • The Debt to FCF ratio of FLO is 3.92, which is a good value as it means it would take FLO, 3.92 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.92, FLO is in the better half of the industry, outperforming 76.92% of the companies in the same industry.

A Closer Look at Profitability for NYSE:FLO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:FLO scores a 6 out of 10:

  • With a decent Return On Equity value of 9.14%, FLO is doing good in the industry, outperforming 60.44% of the companies in the same industry.
  • FLO has a Return On Invested Capital of 9.37%. This is amongst the best in the industry. FLO outperforms 84.62% of its industry peers.
  • FLO's Operating Margin of 6.63% is fine compared to the rest of the industry. FLO outperforms 68.13% of its industry peers.
  • In the last couple of years the Operating Margin of FLO has grown nicely.
  • With an excellent Gross Margin value of 48.79%, FLO belongs to the best of the industry, outperforming 97.80% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of FLO


This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.