Hasbro Inc's Dividend Analysis
Insights into Hasbro Inc's Upcoming Dividend and Financial Health
Hasbro Inc (NASDAQ:HAS) recently announced a dividend of $0.70 per share, payable on 2024-02-15, with the ex-dividend date set for 2024-01-31. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Hasbro Inc's dividend performance and assess its sustainability.
What Does Hasbro Inc Do?
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Hasbro is a branded play company providing children and families around the world with entertainment offerings based on a world-class brand portfolio. From toys and games to television programming, motion pictures, and a licensing program, Hasbro reaches customers by leveraging its well-known brands such as Transformers, Nerf, and Magic: The Gathering. Ownership stakes in Discovery Family, which offers programming around Hasbro brands, and production capabilities (some of which are set to be divested) from Entertainment One helped bolster Hasbro's multichannel presence. The firm acquired EOne in 2019, bolting on popular family properties like Peppa Pig and PJ Masks, and tied up with Dungeons & Dragons Beyond in 2022, offering the firm access to 10 million digital tabletop players.
A Glimpse at Hasbro Inc's Dividend History
Hasbro Inc has maintained a consistent dividend payment record since 1986. Dividends are currently distributed on a quarterly basis and the company has increased its dividend each year since 2001. This achievement classifies Hasbro Inc as a dividend achiever, a prestigious title awarded to companies with at least 23 consecutive years of dividend increases.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Hasbro Inc's Dividend Yield and Growth
As of today, Hasbro Inc currently has a 12-month trailing dividend yield of 5.53% and a 12-month forward dividend yield of 5.53%. This suggests an expectation of consistent dividend payments over the next 12 months.
Over the past three years, Hasbro Inc's annual dividend growth rate was 1.40%. Extended to a five-year horizon, this rate increased to 4.20% per year. And over the past decade, Hasbro Inc's annual dividends per share growth rate stands at 7.70%.
Based on Hasbro Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Hasbro Inc stock as of today is approximately 6.79%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Hasbro Inc's dividend payout ratio is 0.85, which may suggest that the company's dividend may not be sustainable.
Hasbro Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hasbro Inc's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Hasbro Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Hasbro Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hasbro Inc's revenue has increased by approximately 4.70% per year on average, a rate that outperforms approximately 63.66% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Hasbro Inc's earnings increased by approximately -26.90% per year on average, a rate that outperforms approximately 19.14% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -4.30%, which outperforms approximately 36.1% of global competitors.
Next Steps
In conclusion, Hasbro Inc's consistent dividend payments and status as a dividend achiever highlight its commitment to shareholder returns. However, the high payout ratio may raise questions about the long-term sustainability of these dividends. Despite this, Hasbro Inc's strong profitability and good growth metrics provide some reassurance about its financial health. As the company navigates through industry trends and strategic initiatives, investors should monitor these factors closely. Is Hasbro Inc's dividend policy sustainable in the long run given its current financials? This remains an essential question for value investors considering adding HAS to their portfolios.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
