This last pick falls in an extra-sweet spot, considering it’s a midcap stock that also pays a solid dividend.
The $6.2 billion toymaker Hasbro (HAS) is one of the largest players in the game market — a business always evolving with new offerings and remixes on classics.
Sure, Hasbro missed on earnings in the most recent quarter, but that profit shortcoming was largely thanks to weakness in boy toys — a large segment that’s expected to improve next year. For instance, Hasbro has deals with Disney (DIS) for merchandising rights to the popular Marvel series, which should help bolster the segment.
Meanwhile, Hasbro has grown its quarterly payout more than 1,000% since 2003, when it paid out 3 cents per share quarterly. At 40 cents per share, HAS now yields roughly 3.3%.
Even then, Hasbro’s dividend payout only accounts for half the company’s total earnings — profits that are forecast to grow solidly long-term. HAS also has more than $1 billion in cash and equivalents, while its annual operating cash flow has more than doubled since 2009.
As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.