Wednesday, 21 January 2015

New Purchase - Mattel


On January 21, I initiated a position in Mattel. I am hopeful that management will get their act together and monetize their brands as well as Hasbro. Real life movies of Barbie, Halo and Call of Duty would definitely help promote their brands and rake in profits.

Number of shares purchased
100
Price per share
$27.18
Commission
$9.95
Total cost per share
$27.28
Total cost
$2,727.95
Annual dividend per share
$1.52
Initial dividend yield
5.57%
Increase in forward 12-month dividends
$152.00

My dividend yield analysis of MAT shows that it is trading at a discount to its average dividend yield.

My dividend income is now $8,758.87 per year.

7 comments:

  1. ADY,

    Nice entry price. I picked up some shares a few months back around $30. I would like to add to my position, but will probably continue focusing on energy stocks. It will be interesting to see if a dividend increase is coming. Probably not, but at 5.5% it doesn't really matter right now.

    Great job!

    MDP

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    1. From what I've read, MAT's free cash flow doesn't cover the current dividend, so I'd be surprised to see a hike. But even so, I think the stock represents very good value in today's environment. They have the rights to great brands, but perhaps need new management. I'm ready to wait it out...hopefully for the best!

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  2. Thanks for sharing your recent purchase of MAT. 2014 was certainly a year to forget in terms of stock performance. I now many dividend bloggers have been buying into MAT for its high yield which was a result of declining stock price. Maybe they do get their act together this year and stabilize the stock a bit. It will be interesting to see what happens to the dividend in 2015 if an increase or freeze will be in order. At the very least you are getting a really nice yield being paid to wait.

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    Replies
    1. I strongly belive long term returns largely depend on the price you pay for shares, which is why I often buy shares of companies that aren't doing so well. I don't expect an increase this year, but do applaude managements decision (published today) to find a new CEO. They've got excellent brands but their execution sucks the big one. And if disposable income really does increase (due to lower gas prices), that could translate to more toys being sold. I'm ready to wait it out.

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  4. ADY,

    Nice to see a fellow investor. Obviously, management froze the dividend this quarter,but I am confident in the new management team to bring back the magic to Mattel. We all will definitely be keeping a close eye on earnings this year.

    -Lanny

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    Replies
    1. Hi Lanny,

      I completely forgot to answer your comment. Glad to see I'm not the only one hoping Mattel can straighten its act. I look forward to seeing how they intend to correct their issues.

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