Capturing kids' attention with compelling toys is hard enough, butHasbro 's ( HAS ) steady earnings and dividend growth could catch income investors' eye as well.
The Pawtucket, R.I.-based company, which owns brands such as G.I. Joe, Nerf and Transformers, has grown profit each of the past four years. Analysts expect that streak to continue with a 3% increase to $2.90 a share when Hasbro reports fourth-quarter and full-year 2013 results Feb. 10 before the open.
And consensus forecasts call for a 12% EPS jump for 2014.
Hasbro's three-year Earnings Stability Factor of 3, on a scale of 0 to 99, indicates steady growth. The lower the number, the more stable the stock's earnings history.
The toymaker has lifted its quarterly dividend payout each year since 2003 to 40 cents currently, or $1.60 a year. That works out to an annualized yield of about 3.1%, above the S&P 500's 2.05%. It has a three- to five-year dividend rate of 22%, according to IBD data.
Its annual sales track record has been spotty, ranging from a 22% jump in 2007 to a 5% slide in 2012. Yet its return on equity has steadily held above 22% the past six years.
As children's toy trends have changed, so have Hasbro's offerings. A revamped line of Transformers toys is reportedly slated to hit shelves in May. A camera-mounted Nerf gun is also in the works.
Last year it introduced Nerf Rebelle, a line of Nerf guns for girls, and updated its My Little Pony with Equestria Girls.
Hasbro also teamed up withElectronic Arts ( EA ) to develop electronic versions of its popular games, including Monopoly, Scrabble and Yahtzee, for smartphones and other handheld devices. It also bought mobile game maker Backflip Studios.
Shares are down so far this year along with the overall market. But they cleared two saucer bases last year on the way to a 53% rally, outperforming the Nasdaq's 38% gain.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.