FLO - Flowers Food Inc.

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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.

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I've been looking for a good defensive staples stock paying 3% plus dividend to enter into in the Aug 2016 currently high market so I could park some cash for longer term with minimal downside risk. This one looks like it fits the bill. It's only 15% above the low with a higher than average 3.5% yield with good 10 plus year history of paying and growing it's dividend. I was recently looking at CALM and almost went into that one but was real concerned with CALM's lack of product diversity so I removed it from my watch and have been looking for something else. FLO has a diverse set of product brands and future plans to acquire. Growth prospects combined with stable dividends convinced me.

 

Long term dividend investors should look at this. Here's one link that helps explain recent drop and why it is very good accumulation territory.

http://www.suredividend.com/flowers-foods-decline/