Showing posts with label HAS. Show all posts
Showing posts with label HAS. Show all posts

Tuesday, April 25, 2017

MATTEL and HASBRO

Hasbro, symbol HAS, is eating Mattel's lunch (MAT.)  Trading today at $102 HAS investors are mildly bullish on their future if you look at calls.  HAS has a July, 21 $110 call for $1.15 but the volume is low with only 6 contracts traded.  HAS is just off its multi year high of $104.14 hit yesterday.

MAT at $21.79 is just above its 3 years low of $19.45 hit in September of 2015.  Talk about dead money. Yet, the July 21, $24 contract is trading at $.45; also with low volume; only 5 contracts traded.

I no longer own either stock.  HAS is in 2 of my target/model portfolios that I publish, follow, and report on in this blog.   HAS is in the 2011 portfolio.  Bought on October 24, 2011 for $35.09.  I bought it again for the 2012 portfolio at a lower price $33.25.  At that time it was not such a good holding.   Since then, it has been quite a nice holding. 



Will MAT fail?  I don't know.  Will MAT be acquired, perhaps.  HAS is a good holding and with a dividend yield of only 2.12, I won't be buying it soon but it sure is worth watching.

Good Income Investing,

M* MoneyMadam


 
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Monday, February 6, 2017

HAS - Toys are good

Big dividend increase. Leaving MAT in the dust. M*
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Monday, June 27, 2016

TEN DIVIDEND GROWTH STOCKS


Ten stocks from 2011 with the most dividend growth are the subject of this post.

I added each of these stocks to my 2011 Model Portfolio during the period November 2010 through November 2011.  When I picked these stocks they had a minimal yield of 3%, a D/E ratio no greater than 1 or within industry standards, earnings exceeded dividends in their most recent quarter and dividends had increased over time.  The portfolio was built to deliver solid, ever increasing income in a buy and hold strategy.

I picked 52 stocks during that time, about one per week.  In this post I look at the ten stocks with the most dividend growth.  
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Monday, March 7, 2016

HAS Good future for this Dividend Machine

Hasbro's Magic: The Gathering Franchise Is Poised For Immense Growth Long Term http://seekingalpha.com/article/3956234?source=ansh-d $HAS
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Wednesday, January 11, 2012

Dividend Machine Hasbro, HAS

Hamtaro plush from Hasbro
Hamtaro plush from Hasbro (Photo credit: Wikipedia)

Dividend Machine week of January 09, 2012


 The dividend income idea is becoming a crowded trade.   So many companies that I have liked as Dividend Machines are just too expensive because others are buying them.   Therefore, I have to look around for something not so obvious.  


My Dividend Machine for the second week of 2012 is focused on a company that others ignore.    How about toys?  Hasbro (HAS) has a fun and compelling story with all the toys, games, and more mature entertainment.   Operating since 1972, this company was a growth story and then it started sharing income with its shareholders.

Hasbro (HAS) closed today, Wednesday, January 11, 2012, at $33.25.  HAS provides a $.30 quarterly dividend for an annualized yield of 3.6%.  Earnings per share for the previous four quarters were $2.76.  Dividends have increased every year for 10years.  Debt to Equity is 1.03.  HAS qualifies as a Dividend Machine.


Additional income is available through covered calls.  Companies like HAS that go up and down with the Christmas cycle have opportunities to sell covered calls.   Today, an April $37.50 call paid $.40.   Income from this call provides a yield of 1.2 percent.  If the call buyer does buy your stock for $37.50, your gain (not including dividends) would be 13.98 percent.   These are the kinds of companies that active income investors are trying to find.



Lets assume you end up keeping HAS, in that situation your 3.6 per cent annualized yield increases to 4.8 percent by adding in the additional income from just this one call.    You know that we really try to buy companies that we feel we could own for a long time.   



HAS is a good lesson in the financial power of compounding through dividend reinvestment.  If you invested $5,000 10 years ago today (297 shares) and reinvested your dividends, your investment would have increased 151.29 percent to $12,538.   By reinvesting your share balance increased to 380 shares.   If you stopped reinvesting today and turned on the income to spend, your current dividend income of $1.20 per share per year would be $456 or a 9.12 per cent yield on your original investment.


Use HAS as an example of how to employ a Dividend Machine as one of your core income holdings.

Very Truly Yours,




TheMoneyMadam
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Thursday, December 29, 2011

DIVIDEND PERFORMANCE

Summary 2011 Dividend Machines


Dividend Machine is the name I give a stock that meets four basic criteria.  During the past year, I profiled fifty two stocks, one per week.  Each stock profiled met all four criteria at the time I wrote about the company.

This group of fifty two stocks is my 2011 DIVIDEND MACHINE PORTFOLIO.   In this post, I provide a review of the 2011 Dividend Machine Portfolio.   In the future, I will follow this portfolio and periodically report on the performance.

Four Dividend Machine Criteria:

  1. Pay at least a three percent dividend
  2. Earn more than the dividend payout
  3. Increased the dividend every year for at least five years
  4. Debt to equity (D/E ratio) 1 or less or not greater than the industry average

Characteristics of the fifty two 2011 Dividend Machines:

This theoretical portfolio is based on buying 100 shares each of fifty two stocks.  I selected one stock per week that met all four criteria without regard to any other factor such as price earnings ratio, recent news, or need for diversification.  You can see a list of these stocks and review the post describing them by clicking on the 2011 portfolio page at the top of this blog.

  1. Amount invested = $207,118
  2. Price range = $9.27 - $93.37
  3. Average Dividend yield = 4%
  4. Average payout ratio (dividend/earnings) = $52.49%

Industry Diversification:

Although I did not try to create a portfolio with industry diversification in mind, I was surprised to find the degree of diversification this selection technique created.

  •     Nine Utilities
  •     Six Processed & Packaged Goods including Personal Products
  •     Five Electronics
  •     Four Oil, gas or chemicals
  •     Four Machinery & Manufacturing
  •     Four Financials – banks, asset management, insurers
  •     Three Telecommunications
  •     Three Medical instrumentation & supplies
  •     Three Aerospace
  •     Two Pharmaceuticals
  •     Two Waste Management
  •     Seven Other individual industries


Diversification by Market Capitalization:

Similarly, I did not try to select these stocks based on small cap. or big cap.  and again, I was surprised by the level of diversification this technique produced.

  •      Thirteen small cap. companies (up to 2 billion)
  •          Sixteen mid cap. companies (2-10 billion)
  •      Sixteen large cap. companies (10-100 billion)
  •      Seven mega cap. companies (greater than 200 billion)


Performance and other events:

Using closing prices on 12/23/2011, the 2011 dividend machine portfolio posted a $16,676 gain for an 8.05% gain.  The portfolio earns $15,819; these stocks pay out $8,300 in dividends based on the most recent quarterly dividend.  Other events are provided below.


  • Five stocks no longer qualify as a dividend machine because they used special dividends to create increased dividends instead of providing a steady annual increase. 
  • Twenty nine companies have already increased their dividend
  •  Eleven companies will have to increase their next quarter dividend or they will violate the requirement of increasing every year.
  • Two companies no longer pay a 3 percent dividend yield due to price appreciation:  Travelers (TRV) and Harleysville Group (HGIC)
  •  Three companies no longer qualify because their D/E ratio is greater than one or greater than the industry standard.  Lockheed Martin (LMT) D/E 2.39, General Mills (GIS) and Hasbro (HAS).  The remaining 49 companies have acceptable D/E ratios.

I will keep this portfolio intact and follow its performance for as long as I write this blog.  My preliminary opinion is that using these four criteria to select a portfolio of dividend stocks is an easy way to build a diversified income portfolio of dividend stocks.

TheMoneyMadam
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Tuesday, December 27, 2011

2011 Dividend Machine and CAPITAL PRESERVATION

2011 Dividend Machine – Capital Preservation
            Do income investors have to sacrifice capital preservation for income?  I will answer this question by looking at our fifty two, 2011 Dividend Machine companies in terms of their stock price. 
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Monday, October 24, 2011

Dividend Machine for October 24, 2011 Hasbro Inc., symbol HAS

Hamtaro plush from HasbroImage via Wikipedia

Dividend Machine for October 24, 2011 Hasbro Inc., symbol HAS


            Writing this blog on investing for income is such fun and who does not like to have fun?   Hasbro Inc, symbol HAS, is company that makes money selling toys and games.  Hasbro, Inc has been engaged in proving not only fun but also a steadily increasing dividend for quite a while now.  This is our income investors’ dividend machine for October 24, 2011
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