How Flowers Foods, AES And S&T Bancorp Can Put Cash In Your Pocket

Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. Flowers Foods, The AES Corporation and S&T Bancorp have rewarded their shareholders for several decades and recently announced dividend increases. Furthermore, these companies offer high dividend yields of around 3-4%.

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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 has raised its dividends every year since 2014. According to the company's most recent dividend hike announcement on May 23, its Board of Directors increased the quarterly dividend by 4.3% to $0.24 per share, equal to $0.96 annually. Currently, its dividend yield stands at 4.13%.

Flowers Foods' annual revenue (as of June 30) is $5.1 billion. As per the company’s Q2 earnings announcement on Aug. 16, it posted revenues of $1.23 billion, compared to the consensus estimate of $1.24 billion and an EPS of $0.36, compared to the consensus estimate of $0.33.

“We continued to execute well in the second quarter with a solid top- and bottom-line performance,” said Ryals McMullian, chairman and CEO of Flowers Foods. “Our brands outperformed the fresh packaged bread category, growing units in tracked channels and generating leading unit and dollar share gains. Private label and away-from-home margins maintained their positive trajectory as we improved profitability in existing accounts and filled available capacity with new, higher-margin business. And savings initiatives are taking hold, driving a meaningful sequential improvement in costs."

The AES Corporation

The AES Corporation AES is a diversified power generation and utility company operating in 15 countries.

AES has raised its dividends consecutively since 2014. As per its most recent dividend hike announcement on Dec. 8, 2023, the company increased the quarterly dividend by 4% to $0.1725 per share, equal to $0.69 annually. Currently, the company’s dividend yield stands at 3.41%.

AES’ annual revenue (as of June 30) is $12.4 billion. As per the company's most recent earnings report on Aug. 1, it posted Q2 2024 revenues of $2.94 billion, compared to the consensus of $3.19 billion and an EPS of $0.38, compared to the consensus estimate of $0.37.

The company now expects 2024 adjusted EBITDA with Tax Attributes to be in the upper half $3,550 to $3,950 million, driven by new renewables. It also reaffirmed its 2024 guidance for adjusted EBITDA of $2,600 to $2,900 million. Furthermore, AES reaffirmed its expectation for annualized growth in adjusted EBITDA of 5% to 7% through 2027, from a base of its 2023 guidance of $2,600 to $2,900 million.

Jim Cramer says AES is ‘Very Inexpensive’ and recommends buying this industrial stock. Learn more in this piece by Benzinga.

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S&T Bancorp

S&T Bancorp, Inc. STBA is a bank holding company that operates in five markets: Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio and upstate New York.

S&T Bancorp has increased its dividends every year since 2013. According to the company’s most recent dividend announcement on July 24, its Board of Directors hiked the quarterly dividend by 3.13% to $0.33 per share or $1.32 annualized. The current dividend yield on the stock is 3.21%.

As of June 30, S&T Bancorp’s annual revenue was $395.5 million. According to its most recent earnings announcement on July 18, the company generated Q2 2024 revenues of $96.90 million and an EPS of $0.89, beating the consensus estimates.

Check out this article by Benzinga, which highlights three more stocks with high dividend yields.

Flowers Foods, The AES Corporation and S&T Bancorp are good choices for investors seeking reliable passive income. Their dividend yields of around 3-4% and long history of consistent hikes make them attractive to income-focused investors.

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