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.

Dividend Assessment of NYSE:FLO

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:FLO earns a 7 out of 10:

• FLO has a Yearly Dividend Yield of 4.06%, which is a nice return.
• Compared to an average industry Dividend Yield of 3.60, FLO pays a better dividend. On top of this FLO pays more dividend than 87.91% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.26, 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.

Analyzing Health Metrics

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:FLO has received a 5 out of 10:

• An Altman-Z score of 3.69 indicates that FLO is not in any danger for bankruptcy at the moment.
• FLO has a better Altman-Z score (3.69) than 79.12% of its industry peers.
• FLO has a Debt to FCF ratio of 4.06. This is in the better half of the industry: FLO outperforms 74.73% of its industry peers.

Analyzing Profitability Metrics

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 7 out of 10:

• FLO has a Return On Assets of 3.76%. This is in the better half of the industry: FLO outperforms 60.44% of its industry peers.
• FLO has a Return On Equity of 9.31%. This is in the better half of the industry: FLO outperforms 61.54% of its industry peers.
• The Return On Invested Capital of FLO (9.66%) is better than 82.42% of its industry peers.
• Looking at the Operating Margin, with a value of 6.94%, FLO is in the better half of the industry, outperforming 67.03% of the companies in the same industry.
• In the last couple of years the Operating Margin of FLO has grown nicely.
• The Gross Margin of FLO (49.01%) is better than 98.90% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of FLO contains the most current fundamental analsysis.

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.