) makes a variety of toys perfect for the holiday season, but its
shares can also provide a gift that keeps giving -- in the form
of steady dividends.
The Pawtucket, R.I.-based company, whose brands include G.I.
Joe, My Little Pony and Nerf, in addition to games like Monopoly
and Scrabble, last week declared a quarterly cash dividend of 40
cents a share. It will be paid out Feb. 18 to shareholders of
record at the close on Feb. 4.
That's in line with the past three quarterly payouts. Hasbro's
dividend history has been stable -- the payout has steadily
increased each year since 2003. It's most recently been tracking
at $1.60 a year for an annualized yield of about 3.1%, above the
S&P 500's 2.45%. Its three- to five-year dividend growth rate
is 22%, according to IBD data.
The toymaker's Big Hugs Elmo is expected to be a big seller
this holiday season, and its new Nerf Rebelle and My Little Pony
Equestria Girls lines have been well received.
And Hasbro, aiming to keep up with the times, earlier this
year struck a deal withElectronic Arts (
) to create electronic versions of popular board games for
smartphones and other handheld devices. It also bought Backflip
Studios, a maker of mobile games such as "Paper Toss 2.0" and
Hasbro, which has grown earnings the past four years, has a
three-year Earnings Stability Factor of 3 on a scale of 0 to 99.
The lower the number, the steadier profit growth.
The stock has performed well too, rising 45% this year to
outpace even the Nasdaq's 34% gain. It broke out from a long,
saucer base early this year and rallied 20% before pausing to
form another saucer base.
Shares cleared the 49.85 entry point from a high handle and
advanced 9% before pulling back during the past three weeks.
They're now testing support at their 50-day moving average
line, off which they rebounded Wednesday.