Why Avista, Flowers Foods And Black Hills Are Winners For Passive Income

Companies with a long history of paying dividends and consistently increasing them remain appealing to income-focused investors. Avista, Flowers Foods and Black Hills have rewarded their shareholders for decades and recently announced dividend hikes. Furthermore, these companies offer around 4-5% dividend yields.

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Avista Corporation

Avista Corporation AVA is an energy company that produces, transmits and distributes energy and operates other energy-related businesses. Avista Utilities is the operating division that provides electric service to 415,000 customers and natural gas to 378,000 customers.

Avista has increased its dividends consecutively since 2003. According to the company's most recent dividend hike announcement on Feb. 7, its Board of Directors raised the quarterly dividend from $0.46 to $0.475 per share, equaling $1.90 annually. Currently, the company’s dividend yield stands at 4.95%. 

Avista’s annual revenue (as of June 30) is $1.9 billion. According to the company's Q2 2024 earnings report, released on Aug. 7, it generated revenues of $390.81 million and an EPS of $0.29, beating consensus estimates.

"Our financial results demonstrate the strength of our core utility operations, as our second-quarter utility earnings aligned with our expectations. At Avista Utilities, the investments we’ve made in our grid ensured our system’s strong, stable performance during the recent heat wave in the West,” said Avista CEO Dennis Vermillion.

The company reaffirmed its earnings guidance of $2.36 to $2.56 per diluted share for 2024.

Check out this article by Benzinga for Wall Street’s most accurate analysts' take on two more utility stocks which deliver high dividend yields.

Flowers Foods

Flowers Foods, Inc. FLO produces and markets packaged bakery food products in the United States. The company distributes its products, which include fresh bread, buns, rolls, snack cakes and tortillas, through a direct-store delivery system and a warehouse delivery system and operates bakeries. The key brands are Nature’s Own, Whitewheat, Cobblestone Bread, Wonder, Dave’s Killer Bread, Canyon Bakehouse, Mrs. Freshley’s and Tastykake.

Flowers Foods increased its dividends every year since 2014. The company’s most recent dividend hike announcement on May 23 increased the quarterly dividend by 4.3% to $0.24 per share, equating to an annual figure of $0.96. Currently, the company’s dividend yield is 4.21%.

"The board is pleased to reward shareholders with a dividend increase, reflecting our confidence in Flowers' ability to deliver earnings growth in line with our long-term financial targets," said Ryals McMullian, chairman and CEO of Flowers Foods.

Flowers Foods’ annual revenue (as of June 30) is $5.1 billion. According to the company's most recent earnings announcement on August 16, it generated Q2 revenues of $1.23 billion, slightly below the consensus estimate of $1.24 billion, and an EPS of $0.36, better than the consensus of $0.33.

"We are maintaining our 2024 financial outlook, which incorporates continued strong operational performance balanced with the potential impact on consumer and promotional behavior from an uncertain economic environment. We also expect full-year results to benefit from new business wins and additional cost savings. Our portfolio strategy is generating improved overall performance and we expect to continue that progress through further investments in innovation and marketing. We remain committed to achieving results in line with our long-term financial targets," said Ryals McMullian, chairman and CEO of Flowers Foods.

Check out this piece by Benzinga for two more stocks with consistent dividend growth offering high yields.

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Black Hills

Black Hills Corporation BKH is an energy company that operates through its Electric Utilities, Gas Utilities, Corporate and Other segments. These segments operate in states in the Midwest and mountain regions in the U.S. 

On Jan. 26, Black Hills announced that its board of directors approved a quarterly dividend of $0.65 per share, an increase of $0.025 per share over last quarter's dividend. 

"This dividend increase showcases our long-standing commitment to reward shareholders with a sustainable, growing dividend," said Linn Evans, president and CEO of Black Hills Corp. 

The new annualized rate represents 54 consecutive years of annual dividend increases, the second-longest track record in the electric and natural gas utility industry.

The current yield on the dividend stands at 4.51%.

The company's annual revenue (as of June 30) is $2.1 billion. Black Hills' most recent earnings report, released on July 31, posted revenues of $402.60 million and an EPS of $0.33. While EPS was better than expected, revenues significantly missed the consensus estimate.

"Year-to-date earnings were up 6% compared to last year and we are reaffirming our earnings guidance for the year," said Linn Evans, president and CEO of Black Hills Corp. "We continue to deliver progress on our customer-focused strategy and are excited about powering Meta's newest AI data center in Cheyenne, which we expect to begin serving in 2026. Our team continues to attract new data centers with our leading mission-critical reliability and innovative energy solutions, including our unique tariffs and capital-light energy procurement model."

In summary, Avista, Flowers Foods and Black Hills are solid options for investors seeking reliable passive income. Their offered yields of around 4-5% and their long history of consistent dividend increases make them particularly attractive to income-focused investors.

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