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Toy Maker Hasbro Offers Steady Dividend Growth
By: Investor's Business Daily
Toy makerHasbro ( HAS ) is moving into the new generation of gaming -- mobile applications.
It has some well-known timeless brands, including Monopoly and Play-Doh, but is also moving fast into the latest focus for children.
In July, it bought a majority stake in Backflip Studios, a Boulder, Colo.-based maker of mobile games.
Backflip claims that its popular games have been downloaded 300 million times since the company was founded in 2009.
Its most popular games include "Paper Toss 2.0," downloaded 24 million times, and "DragonVale" with 10 million downloads.
Hasbro has been aggressively buying back shares. Between 2005 and 1012, it bought back 89.2 million shares.
This August, it announced plans to buy back $500 million in more shares. Shareholders gain from buybacks because the reduced number of shares increases EPS.
Hasbro has 130 million shares outstanding, of which 110 million are in the floating supply.
A notable number for the company is 4.9%, which is the amount of revenue it plows into research and development. That means the company is constantly working to stay in front of competitors and come up with the next big thing.
The company has offered a dividend since 1977 and has increased that dividend in nine of the last 10 years.
It now amounts to $1.60 a year, which works out to an annualized yield of about 3%. The dividend has a three- to five-year growth rate of 22%, according to IBD calculations.
The company has four straight years of earnings growth and a three-year Earnings Stability Factor of 8 on a 0-to-99 scale in which low numbers correspond to steady earnings growth.
The stock is trading near record highs after finding support near its 50-day moving average last month. It tends to trade quietly.