08-16-2016, 03:02 PM
(08-16-2016, 11:47 AM)Rasec Wrote: I looked into Flo and it wasn't the lawsuit that I was concerned, but the lack of growth on the stock price, since 2013 the stock price traded at $22 and has constantly dropped to a now recent low of $14. It seems to have very limited upside on the long term.
Hi Rasec.
At this low of $14 there's some great value in the stock. It has a decent dividend track record and I'm confident it can continue to increase its dividend in the future.
Yes, the softness in the industry is somewhat concerning but that doesn't justify the current valuation (for me). I expect that once the lawsuit is settled that FLO will return to the $20's.
Anyway, it's not capital gains that interests me as a dividend growth investor. Frankly, I'd be happy to see the stock drop lower so I could add more and eat up that yield.