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If you haven't bought Mattel, Inc. (NASDAQ:MAT) yet, then 2013 may be the year to look for an entry point. Mattel designs, manufacturers and markets toy products worldwide, and recently has seen great growth both in North America and Canada, as well as internationally.

Some of Mattel's 2012 Key Wins

Mattel recently released financial results for 2012 showing many increases across the board. North America and Canada's gross sales were up 2% and International gross sales increased 4% in 2012. Specifically, Mattel saw gross sales increase worldwide in its core brands: Hot Wheels up 2%, Fisher-Price up 4% and American Girl up 11%. The only core brand decrease was Barbie which was down 3% in 2012. In addition to increased gross sales, operating income decreased from $1.04 billion in 2011 to $1.02 billion in 2012, helping add to the bottom line.

Bryan G. Stockton, chairman and chief executive officer of Mattel, had this to say in a press release praising the company:

We had another great year at Mattel with record sales for both total company and our International division, stronger gross margins and our second year of more than $1 billion in operating profit.

These results are particularly gratifying given the challenging global economic and cost environment.

Net Income Increases

Net Income for Mattel has increased the last 5 years and shows no signs of slowing down (see net income table below).

Mattel's 5 Years of Net Income
YearNet IncomeYOY Inc/Dec
2008$379.63M--
2009$528.7M+39.27%
2010$684.87M+29.54%
2011$768.52M+12.21%
2012*$773.09M / $860.19M*+.0059% / +11.93%*

*Note that 2012 net income of $773.09 million is less $81.7 million (net of taxes) for a litigation charge paid by the company in the fourth quarter of 2012 to cover fees and costs. Otherwise, net income would have been approximately $860.19 million for 2012.

Dividend Increases

Mattel has continued to increase its dividends each year, in fact, its increased its dividend 92% since 2008. With financial results continuing to reflect those of the last few years, dividends should continue into the future (see dividend table below).

Mattel's 6 Years of Dividends
YearDividendsYOY Inc/Dec
2008$.75--
2009$.750%
2010$.83+10.67%
2011$.92+10.84%
2012$1.24+34.78%
2013*$1.44+16.13%

*Projected yearly dividend, based on four quarterly payments of 36 cents each in 2013.

Stock Repurchases

Mattel is showing confidence in their own shares by buying them back. Mattel repurchased 1.4 million shares of common stock in the fourth quarter of 2012. For the year, Mattel repurchased 2.3 million shares.

Conclusion

I believe this is a great growth stock that should continue to see dividend increases for years to come. At the time of writing Mattel's most recent stock closing price was $40.52 and currently pays a stable dividend of 36 cents quarterly for a yearly yield of 3%-4%. As a bonus you get international exposure since Mattel sells products in more than 150 nations. I want to wait for an entry point of around $38 per share.

Source: Mattel: Hot Wheels, Barbie And Rising Dividends