Hasbro Inc (NASDAQ:HAS) has pleased shareholders over the past 10 years, paying out an average dividend of 3.00% annually. The company is currently worth $11.52B, and now yields roughly 2.50%. Should it have a place in your portfolio? Let’s take a look at Hasbro in more detail. Check out our latest analysis for Hasbro
5 checks you should do on a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Is it the top 25% annual dividend yield payer?
- Has it paid dividend every year without dramatically reducing payout in the past?
- Has dividend per share amount increased over the past?
- Is its earnings sufficient to payout dividend at the current rate?
- Will the company be able to keep paying dividend based on the future earnings growth?
How does Hasbro fare?
Hasbro has a payout ratio of 46.72%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 50.93%, leading to a dividend yield of 2.88%. Furthermore, EPS should increase to $5.13. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. HAS has increased its DPS from $0.64 to $2.28 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes HAS a true dividend rockstar. Relative to peers, Hasbro generates a yield of 2.50%, which is high for leisure stocks but still below the market’s top dividend payers.
Keeping in mind the dividend characteristics above, Hasbro is definitely worth considering for investors looking to build a dedicated income portfolio. 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 research:
1. 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.
2. 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.
3. 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.