7 Safe High-Yield Dividend Stocks: Mattel (MAT)
MAT Dividend Yield: 6%
Shares of Mattel, Inc. (NASDAQ:MAT) are at a 52-week low, so investors may want to be careful in timing an entry point. Catching a “falling knife” is admittedly not safe.
However, concerns about a potential dividend cut are a bit too much. While fourth-quarter earnings disappointed investors and sent shares down 18%, the balance sheet is reasonably strong.
And beneath all that bad news is an attractive opportunity.
MAT stock trades at a notable discount to rival Hasbro, Inc. (NASDAQ:HAS). Meanwhile, a long-building turnaround may have hit a speed bump in Q4, but there’s still reason for optimism looking forward. A series of product launches related to 2017 movies should help this year’s sales. A partnership with Alibaba Group Holding Ltd (NYSE:BABA) will put Mattel merchandise on Alibaba’s Tmall in China. And cost-cutting should help margins going forward.
Indeed, there’s reason to be interested in Mattel as more than just a high-yield dividend stock. There’s a real opportunity for share appreciation — if the company can execute.
Should Mattel do so, shareholder returns will be much more than the 6% in cash that MAT throws off annually.