Flowers Foods, Inc. (FLO) is a relatively underfollowed dividend growth stock. The baked goods company has raised its dividend in each of the past 18 years, and offers investors a very solid dividend yield of 3.40%. However, mediocre operating metrics and a vulnerability to outside cost pressures limit the upside available to investors. While the stock can sometimes make sense, the market rewards high-quality stocks over long time frames. Unfortunately, we don't think that Flowers Foods "makes the cut" in this regard.
Strong Brands In A Stable Food Category
(Source: Flowers Foods, Inc.