Flowers Foods has announced a three-for-two split of the company’s stock by means of a 50% stock dividend. The group has also increased its quarterly cash dividend by 50%.
Both the stock split and the dividend are payable on 29 June, 2007, to all shareholders of record as of 15 June, 2007.
Following the split, shareholders will own three shares for every two shares they held on 15 June, 2007 and their quarterly dividend rate will be US$0.125 per share, or $0.50 per share on an annualised basis. The Georgia-based food group said that this equates to a 50% increase over the previous dividend rate.
“Our business is generating substantial cash flow, our balance sheet is strong, and our operating strengths are evident,” said Flower Foods chairman George E. Deese at the company’s annual stockholders’ meeting. “The board believes Flowers Foods is in an excellent position to reward our shareholders with an increased dividend, allowing our investors to participate in the company’s success. In addition, the stock split will increase the liquidity of our stock and attract new shareholders.”
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