12 Best Dividend Stocks Under $25

6. Flowers Foods, Inc. (NYSE:FLO)

Number of Hedge Fund Holders: 27

Share Price as of June 21: $22.5

Flowers Foods, Inc. (NYSE:FLO) is a Georgia-based company that specializes in producing and marketing bakery products. On May 23, the company declared a 4.3% hike in its quarterly dividend to $0.24 per share. This marked the company’s 22nd consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock’s dividend yield on June 21 came in at 4.21%.

Flowers Foods, Inc. (NYSE:FLO) reported strong earnings in the first quarter of 2024. Its strong performance highlights the success of its portfolio strategy and investment in marketing and innovation. Despite difficult market conditions, its brands demonstrated resilience, gaining market share and outperforming the fresh packaged bread category. Particularly important was the growth in quarterly branded retail volumes, marking the first increase since 2020. The company reported a 3.5% YoY increase in its branded retail sales to $1.015 billion. Efforts to enhance profitability in away-from-home and private label segments are also yielding positive results, notably boosting margins in these areas of business. The company was able to grow its business over the years due to the strength of its leading brands, investments in innovation, positive pricing actions, and improved margins in key segments. Its revenue has jumped from $4.38 billion in 2020 to $5.03 billion in 2023. The company’s revenue for Q1 2024 came in at $1.58 billion, which also showed a 3% growth from the same period last year.

The good news for income investors is that Flowers Foods, Inc. (NYSE:FLO)’s cash flow is ample enough to support its dividend payments. In the most recent quarter, the company generated $105.1 million in operating cash flow, showing an increase of $47.2 million from the prior-year period. During the quarter, it returned $51.1 million to shareholders through dividends, up from $49.1 million paid in the same period last year.

For FY24, Flowers Foods, Inc. (NYSE:FLO) is maintaining its outlook, which includes expected volume improvements while recognizing the ongoing economic uncertainty and its potential effects on consumer behavior and the environment. The company expects to benefit from expanded savings initiatives and new business acquisitions.

Insider Monkey’s database of Q1 2024 indicated that 27 hedge funds owned stakes in Flowers Foods, Inc. (NYSE:FLO), up from 26 in the previous quarter. These stakes have a total value of over $285 million. Ken Griffin’s Citadel Investment Group remained bullish on the stock during the quarter, boosting its stake in the company by over 4,000%.