Here's a company that generates positive cash flow and uses the cash well. They pay a dividend and grow it consistently. They buy back shares and they make what I consider to be sensible acquisitions, like the recent Radica deal, to improve their already impressive portfolio of toy brands.
I would be a happier shareholder if they started paying the dividend on a quarterly rather than an annual basis, as most companies do these days. They should also pay down some of their debt, and give the agencies a reason to raise their current BBB-ish credit rating. Despite these issues, Mattel still offers dividend investors a good chance of future dividend hikes, to go with the current yield of 2.5%.
It's not often that investors get the chance to make a play that falls into so many categories: to buy into a technically strong stock, at a relatively low multiple, with above average dividend yield and a new-product buzz to boot.
Throw in whatever value you think the brands - Barbie, Elmo, Fisher Price - are worth, and you get a trade that I find very very difficult to reason the other side of.
Disclosure: Author is long MAT