Why NYSE:FLO provides a good dividend, while having solid fundamentals.

FLOWERS FOODS INC (NYSE:FLO) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:FLO scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

A Closer Look at Dividend for NYSE:FLO

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:FLO has received a 7 out of 10:

• With a Yearly Dividend Yield of 4.07%, FLO is a good candidate for dividend investing.
• FLO's Dividend Yield is rather good when compared to the industry average which is at 3.58. FLO pays more dividend than 89.13% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.37, FLO pays a better dividend.
• On average, the dividend of FLO grows each year by 10.15%, which is quite nice.
• FLO has been paying a dividend for at least 10 years, so it has 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

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:

• FLO has an Altman-Z score of 3.68. This indicates that FLO is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of FLO (3.68) is better than 77.17% of its industry peers.
• FLO has a debt to FCF ratio of 3.92. This is a good value and a sign of high solvency as FLO would need 3.92 years to pay back of all of its debts.
• FLO's Debt to FCF ratio of 3.92 is fine compared to the rest of the industry. FLO outperforms 77.17% of its industry peers.

Assessing Profitability for NYSE:FLO

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:FLO was assigned a score of 7 for profitability:

• FLO has a better Return On Assets (3.67%) than 61.96% of its industry peers.
• FLO's Return On Equity of 9.14% is fine compared to the rest of the industry. FLO outperforms 63.04% of its industry peers.
• The Return On Invested Capital of FLO (9.37%) is better than 83.70% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for FLO is above the industry average of 7.76%.
• FLO has a better Operating Margin (6.63%) than 69.57% of its industry peers.
• In the last couple of years the Operating Margin of FLO has grown nicely.
• The Gross Margin of FLO (48.79%) is better than 97.83% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of FLO for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.