Financial independence boils down to one thing: owning your time. And for income investors, few tools are as effective as dividend-paying stocks. Even better? When those dividends come wrapped in a fat yield. That’s how you shorten the road to freedom.

Last month, Jason Fieber spotlighted Flowers Foods (FLO) as his High-Yield Opportunity of the Month. We’re talking about a century-old bread-and-snacks outfit with brands every American knows — Nature’s Own, Dave’s Killer Bread, Wonder Bread. These are staples that get tossed into shopping carts week after week, rain or shine.

FLO: Setup, Selloff, and What Changed

Here’s what Jason saw: FLO was serving up a dividend yield around 6% — more than triple the S&P 500 average. The company had hiked its payout for 24 straight years. Recent bumps have been modest, sure, but the streak says management is committed to shareholders. Bread isn’t glamorous, but it’s steady — stability that sets a floor under the business. Valuation-wise, FLO was already trading below its historical norms on earnings and cash flow, and Jason’s dividend discount model pegged the stock as modestly undervalued.

Fast forward to today, and the setup looks even juicier. The share price has been sliced by roughly 20% since Jason’s write-up, which has pushed the yield to 7.2% — a level that’s hard for income investors to ignore.

So what spooked the market? FLO’s Q2 print on August 15 came in light: EPS of $0.30 (down ~17% YoY) and revenues below expectations. Management lowered full-year sales and earnings guidance, and analysts responded with the usual knee-jerk downgrades. Cue the selloff.

The bearish view: revenues may be up, but profits aren’t following suit — margins are getting squeezed. On the shelf, private-label competition is real as shoppers trade down to store brands. Management has also been spending aggressively: a $795M acquisition plus a $350M ERP rollout both limit flexibility and raise the bar for execution. Inflation hasn’t helped, pressuring volumes in both bread and cake. None of that screams “easy road ahead.”

The bullish view: that 7.2% dividend is real money — if the payout holds — and these are not no-name loaves. FLO owns iconic brands (Nature’s Own, Dave’s Killer Bread, Wonder) that enjoy habitual, repeat purchases. The Simple Mills acquisition pushes the company into “better-for-you” snacks, while new launches (keto, organic, snacking) keep the lineup relevant. Behind the scenes, supply-chain and e-commerce upgrades could unlock efficiency. With the stock now well below its usual valuation bands, you don’t need perfection — just stabilization — to get paid handsomely while you wait.

The Takeaway

Flowers Foods is a classic case of high yield with baggage. On one side: margin pressure, heavy spending, and private-label competition. On the other: a 7.2% yield backed by household brands, product refreshes, and a valuation that already prices in plenty of pain.

For income investors, the proposition is simple: you’re getting paid generously to see if management can steady the ship. If the dividend holds — and that’s the key “if” — FLO could be one of those boring names that quietly outperforms from an unloved base. The best yields tend to show up when the story looks messiest. That’s usually when patience (and a thick skin) gets rewarded.

Good investing!
Greg Patrick

PS. Jason’s next High-Yield Opportunity of the Month will be released in the coming days inside Dividends & Income Select. Click here to join.