3 Days Left To Cash In On Hasbro Inc (NASDAQ:HAS) Dividend, Is It Worth Buying?
Have you been keeping an eye on Hasbro Inc’s (NASDAQ:HAS) upcoming dividend of $0.63 per share payable on the 15 May 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 30 April 2018. Is this future income a persuasive enough catalyst for investors to think about Hasbro as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. See our latest analysis for Hasbro
How I analyze a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is their annual yield among the top 25% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share risen in the past couple of years?
Is it able to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
How does Hasbro fare?
The current trailing twelve-month payout ratio for HAS is 135.73%, which means that the dividend is not well-covered by its earnings. However, going forward, analysts expect HAS’s payout to fall into a more sustainable range of 51.07% of its earnings, which leads to a dividend yield of around 3.11%. In addition to this, EPS should increase to $4.31, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. In the case of HAS it has increased its DPS from $0.8 to $2.52 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. In terms of its peers, Hasbro has a yield of 2.90%, which is high for Leisure stocks but still below the market’s top dividend payers.
Next Steps:
With these dividend metrics in mind, I definitely rank Hasbro as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three relevant aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for HAS’s future growth? Take a look at our free research report of analyst consensus for HAS’s outlook.
Valuation: What is HAS worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether HAS is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
