Grab These 5 ‘Strong Buy’ Blue Chips Before They Raise Their Dividends This Week

Flowers Foods

While off the radar, this defensive consumer staples stock makes sense for nervous investors. Flowers Foods Inc. (NYSE: FLO) produces and markets packaged bakery food products in the United States. Its principal products include fresh breads, buns, rolls, snack cakes and tortillas, as well as frozen breads and rolls, under the Nature’s Own, Dave’s Killer Bread, Wonder, Canyon Bakehouse, Mrs. Freshley’s and Tastykake brand names.

The company distributes its products through a direct-store-delivery distribution and a warehouse delivery system, as well as operates bakeries. Its customers include national and regional restaurants, institutions and foodservice distributors, and retail in-store bakeries; wholesale distributors; mass merchandisers, supermarkets and other retailers, vending outlets, and convenience stores; quick-serve chains, food wholesalers, dollar stores and vending companies; and public health care, military commissaries, prisons and other governmental institutions.

Flowers Foods stock investors receive a 3.08% yield. The quarterly $0.22 dividend is expected to be bumped to $0.23 a share.

Stephens has set its target price at $28, shy of the $28.83 consensus target. Monday’s closing share price was $25.59.

Insperity

Here is another top idea for investors looking for solid growth and income potential. Insperity Inc. (NYSE: NSP) engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses. It offers its services through its Workforce Optimization and Workforce Synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers’ compensation, government compliance, performance management and training and development services.

The company also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; people management services; and employer liability management services, as well as solutions for the middle market.

In addition, Insperity offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; time and attendance; performance management; recruiting; employment screening; retirement; and insurance services. The company was formerly known as Administaff and changed its name in March 2011.

The current dividend yield is 1.87%. The $0.52 per share payout is expected to increase to $0.58.

Roth MKM’s $139 target price is higher than the consensus target of $135.33. Insperity stock closed on Monday at $113.41 a share.

Lowe’s

This leading home improvement retailer has a low 6% of foreign sales, and it remains a top pick at Goldman Sachs. Lowe’s Companies Inc (NYSE: LOW) has more than 2,000 stores in the United States and Canada. The company has tempered its new store opening plans and is focusing investments on technology and e-commerce capabilities, in addition to improving its retail store productivity.

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