Dividend Desire: Will 3-D Printing Make Hasbro A Model Of Failure?

Matt Cilderman profile picture
Matt Cilderman

If you have read my previous articles, you know that I usually invest in dividend growth stocks. Recently, a number of prominent dividend-related contributors and commenters have mentioned an interest in investing in Hasbro (NASDAQ:HAS) as it reached a yield of 4%. I decided to begin my own research on the company. What follows is the data I found and my thoughts on the company's future.

Business Summary

"Hasbro, Inc., together with its subsidiaries, engages in the provision of children's and family leisure time products and services worldwide." Its most famous brands are "TRANSFORMERS, PLAYSKOOL, NERF, LITTLEST PET SHOP, MY LITTLE PONY, G.I. JOE, TONKA, MILTON BRADLEY, PARKER BROTHERS, CRANIUM, and WIZARDS OF THE COAST" (Taken from Yahoo Finance page). It also has a licensing deal with the Walt Disney Co. (DIS) to produce products like the Avengers action figures, etc.

Its main, publicly-traded, competitor is Mattel (MAT); then secondarily, JAKKS Pacific, Inc. (JAKK) and LeapFrog Enterprises Inc. (LF).

Hasbro by the Numbers

As an investor who is interested in dividends, I look at these metrics to begin my analysis.

  1. Dividend: $1.44
  2. Yield: 4.1%
  3. 5 yr. DGR: 17.2%
  4. Payout Ratio: 44%
  5. Debt Coverage Ratio: 6.1

This is just a quick peek at a few data points, but upon deeper analysis, the company looks relatively healthy with plenty of room to increase its dividend in the near term. Additionally, the recent success of the Avengers movie is expected to translate into revenue for Hasbro. What has me worried is the future of the company five to ten years out. Why? 3-D printing.

What is 3-D Printing?

There are three main types of 3-D printers. Click here for an in-depth explanation of how they work. For the rest of us, check out this brief and entertaining introduction to one type of 3-D printing:

This article was written by

Matt Cilderman profile picture
I took my writing, research, and marketing skills and created my own Internet Marketing Services company, Cilderman Solutions, LLC. www.CildermanSolutions.com - I hope you will stop by!

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