Flowers Foods (FLO) will raise its quarterly dividend by 5.3 percent to $0.20 per share in 2020. Last year the packaged bakery products producer hiked its quarterly payment by 5.6 percent.

The next dividend is payable on June 19, 2020 to shareholders of record on June 5, 2020. A new annual rate of 80 cents per share yields 3.5% at a stock price of $22.88.

In today's press release the company explains the dividend hike: "This dividend increase reflects the board's conviction in Flowers' ability to generate consistent results over time and throughout the business cycle," said Ryals McMullian, Flowers Foods president and CEO. "We will continue to allocate cash flow with a focus on maximizing return on invested capital and growing shareholder value. The dividend represents one piece of our capital allocation strategy, which also includes reinvesting in our business, share repurchases, and strategic acquisitions."

Flowers Foods, Inc. is a producer and marketer of packaged bakery products. The Company operates in two segments: direct-store-delivery segment and warehouse delivery segment. Among the company's top brands are Nature's Own, Wonder, Tastykake, and Dave's Killer Bread. Flowers Foods has paid a dividend to shareholders every year since 2002.