Flowers Foods May Sell A Bread Brand To Maintain Its Dividend

Eric Novinson248 FollowersFollow5ShareSavePlay(11min)Comment(1)SummaryFlowers Foods offers a 10%+ dividend yield, but current earnings do not cover the payout, raising sustainability concerns.FLO faces near-term headwinds from a shrinking bread market and elevated leverage, yet management may sell a brand to bolster liquidity.Despite refinancing risks and negative bread category growth in 2026, FLO guides for stable margins and potential market share gains via new products.I assign FLO a buy rating with an 11% upside to my $10.97 price target, supported by reasonable valuation and long-term bread market resilience. Katrina Wittkamp/DigitalVision via Getty Images Right now, Flowers Foods (FLO) is getting a lot of attention from investors because of its 10% dividend. And many investors are debating whether this bread company will keep paying its dividend. It doesn’t sound likeThis article was written byEric Novinson248 FollowersFollowI am a freelance business writer. I formerly wrote articles for the Motley Fool Blogging Network, where I won several editor's choice awards. After that, I wrote articles for the main Motley Fool site. I typically focus on restaurants, retailers, and food manufacturers, considering both growth opportunities and valuation metrics. I usually look for long term investment opportunities and plan to hold stocks for several years.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.