Flowers Foods hikes dividend by 5%

Flowers Foods (FLO) will raise its quarterly dividend by 5 percent to $0.21 per share in 2021. This follows a dividend hike of 5.3 percent to $0.20 per share in 2020. Last year marked 18 consecutive years of dividend increases by the packaged bakery products producer.

The next dividend is payable on June 24, 2021 to shareholders of record on June 10, 2021. A new annual rate of 84 cents per share yields 3.5% at a stock price of $24.

"The board is confident that the company's leading brands will drive growth in-line with our long-term financial targets," said Ryals McMullian, Flowers Foods president and CEO. "That expected growth and our strong cash flow enables the company to invest strategically and enhance our business while also continuing our long history of rewarding shareholders with a growing dividend."

Flowers Foods, Inc. is a producer and marketer of packaged bakery products. The Company operates in two segments: direct-store-delivery segment and warehouse delivery segment. Among the company's top brands are Nature's Own, Wonder, Tastykake, and Dave's Killer Bread. Flowers Foods has paid a dividend to shareholders every year since 2002.