Everyone Has to Eat: Consider Sysco Corporation (SYY) Stocks and More

Flowers Foods, Inc. (NYSE:FLO) is a smaller rival, with a market capitalization slightly less than $4 billion.  The company produces and markets bakery products in the United States.  Interestingly, Flowers Foods has been involved in the bidding for the Hostess Brands products:  Flowers Foods was picked as the lead bidder for six of Hostess’ major bread brands, including Wonder.  The company reported sales over its first three fiscal quarters rose more than 8 percent year over year.  The stock also pays a solid dividend which was raised 6.7% last year and yields 2.3% at current prices.  While Flowers Foods is a successful company, the stock appears fully valued with a trailing P/E near 30 and a forward P/E greater than 20 times.

The Bottom Line

A predictable business model that sells products to consumers regardless of the prevailing economic environment is a great way to earn reliable returns over time.  Each of these companies has a long operating history with a demonstrated track record of rewarding shareholders.  These three stocks offer compelling dividend yields that meet or beat the yield on the broader market and are worthy of further research for many dividend investors.

The article Everyone Has to Eat: Consider These Food Stocks originally appeared on Fool.com and is written by Robert Ciura.

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