Saturday, September 10, 2016


We Recently Purchased The Following:

Flower Foods, Inc (FLO)
Purchased 33 shares of FLO today (9/9/2016) at $14.63
Total Spent: $482.78; added $21.12 in forward dividends.

With the market steadily climbing since February, we haven't been very active in the buying column. In fact, our recent purchase of Flower Foods, Inc (FLO) is just our 2nd purchase since February. Our only other purchase was made was on June 24, 2016, when we picked up shares of Apple Inc (AAPL). But with the market reacting to North Korea testing their nuclear weapons and the possibility of a rate hike soon, it appears that we may have a few more buying opportunities soon. Several big names dropped 2-4% today alone, as the Down Jones saw a decline of more than 300 points.  

We've had our eye on Flower Foods, Inc (FLO) for a few weeks now, it has certainly been a popular choice among DGI investors.  In fact, we just posted results of the buying activity in August around the DGI community, FLO was the overwhelming winner! Here are a few reasons why we believe FLO has been popular: 1) FLO is trading at a 53.4% discount from its 52-week high; 2) FLO currently pays a juicy 4.30% dividend; 3) Although not super low, their current payout ratio of 70.3% should be enough to keep those dividends coming while we wait for the stock price to bounce back; 4) FLO has paid a dividend since 2002 and has consistently raised their dividends since 2006 (10 consecutive years!).  

Company Description
From Google Finance:
Flowers Foods, Inc. is a producer and marketer of bakery products. The Company operates in two segments: direct-store-delivery segment (DSD Segment) and warehouse delivery segment (Warehouse Segment). The DSD segment's production plant locations include Birmingham, Alabama; Opelika, Alabama; Tuscaloosa, Alabama; Goldsboro, North Carolina; Jamestown, North Carolina, and Oxford, Pennsylvania. The Warehouse Segment's production plant locations include Montgomery, Alabama; Texarkana, Arkansas; London, Kentucky; Tucker, Georgia; Cedar Rapids, Iowa (mix plant); Cleveland, Tennessee, and Crossville, Tennessee. The Company's DSD Segment operates approximately 40 bakeries that market a range of bakery foods, including breads, buns, rolls, tortillas and snack cakes. The Warehouse Segment produces frozen bread and rolls, and snack cakes. The Warehouse Segment's Company-owned brands include Mrs. Freshley's, European Bakers and Broad Street Bakery.

With our recent purchase of Flower Foods, Inc (FLO), the estimated forward dividends for our family's dividend stocks portfolio grew another $21.12, putting our yearly dividends at approximately $3,274/year (excluding our Edwards Jones account) and $3,659/year (including our Edward Jones account).  

Since did not previously own Flower Foods Inc, the recent buy of FLO added yet another dividend paying company to our family's dividend stocks portfolios (WF and EJ Accounts). The total stocks held in our family's dividend stock portfolio is now 55 different dividend paying stocks/ETFs and also 5 companies that either don't pay a dividend our has currently suspended their dividends.

Our family's dividend stocks portfolio may be found
by clicking on the link below:

We also maintain an extensive list of stock analysis
that can be access through the link below:

We also just started a list of Recent Buys by other bloggers
that can be access through the link below:


Flower Foods, Inc. (FLO)
P/E: 19.88
Payout Ratio: 70.3%
Dividend Yield: 4.30%
Dividend Growth Rate (3yr AVG): 11.78%
10 consecutive years of dividend increases
Last Ex-dividend date: 8/31/2016
Next Ex-dividend date: approx. 11/31/2016
Have paid a dividend since: 2002 (14 years)
Pays a dividend 4 times a year
Market Cap: 3.02 Billion
52-week high: $27.31
52-week low: $14.35

Purchased Price: $14.63

What are your thoughts on of recent purchase?

What are you buying?


  1. Thanks for sharing AFFJ. I like the buy as I bought some myself. Let's sit on FLO and i'm sure it'll come back. What company doesn't go through problems?
    Look at our lives... there is always a bump here and there.
    Glad to be a fellow shareholder with you. Cheers bro.

    1. Completely agree Hustler. We love buying good companies when they are experiencing some rough times. When you're collecting a 4.3% dividend while you wait, it makes even easier to be more patient for a turnaround. :)

      Best wishes, AFFJ

  2. More FLO!
    I might have to get on the Flowers train soon.
    P/E at 20 is a bit high but everything seem expensive right now.

    1. Yeah, I have been watch other buy recently and thought I'd get in on the action. Felt that $14.63 was a nice entry point. We didn't buy a large stake so if the stock goes down further, we wouldn't mind adding to our holding to average down our cost basis. :)

      Thanks for commenting. AFFJ

  3. Welcome to the club! I recently bought it too and it's no surprise why it's popular. The only thing troubling me is the payout ratio but I'm ok with a small purchase for now. Markets on Friday did turn down a bit as you said so let's hope it opens the door for some more buys. Congrats on the $21 increase in dividends!

    1. Thanks Adam. Glad to see that I am with the masses on this one. We understand there may be some rough waters ahead but feel that FLO is a large company that will be around for awhile. We don't mind collection at 4.3% dividend while we wait for a recovery. :)

      Thanks for stopping by. Best wishes! AFFJ