Hasbro Inc (NASDAQ:HAS): Ex-Dividend Is In 6 Days, Should You Buy?
Shares of Hasbro Inc (NASDAQ:HAS) will begin trading ex-dividend in 6 days. To qualify for the dividend check of $0.63 per share, investors must have owned the shares prior to 30 April 2018, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Hasbro’s latest financial data to analyse its dividend characteristics. Check out our latest analysis for Hasbro
5 questions to ask before buying a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Does it pay an annual yield higher than 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has it increased its dividend per share amount over the past?
Is it able to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
Does Hasbro pass our checks?
Hasbro has a trailing twelve-month payout ratio of 71.88%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 50.83%, leading to a dividend yield of 3.35%. However, EPS should increase to $5.15, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of HAS it has increased its DPS from $0.8 to $2.52 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes HAS a true dividend rockstar. Compared to its peers, Hasbro produces a yield of 3.04%, 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, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three essential factors you should further research:
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.
