We’re pleased to present the third entry in The Twelve Stocks of Christmas, a focus on 12 holiday-related stocks that you can invest in right now. While these stocks are available to purchase year-round by anyone, they’re currently receiving more attention due to their products’ popularity during the holiday season.
Hasbro is the third-largest toy maker in the world. Only Lego and Mattel make more in revenue than the Rhode Island-based company. Yet while they might not be the biggest in their field, they own pretty much every popular toy brand that you grew up with. From GI Joes to Mr. Potato Head, Milton Bradley Games, and everything in between, Hasbro holds its own as a successful, in-demand company that every generation falls in love with at one point.
Hasbro isn’t just a toymaker. They’re also producers of bestselling films based on their properties, make TV shows starring their toys, and partially own Discovery Family, a television channel formerly known as The Hub and Discovery Kids. While the U.S. has strong laws about entertainment products marketed to children for the sole purpose of selling them toys, Hasbro is still able to put out a Transformers film every two years, while keeping kids (and some adults) interested in My Little Pony.
Hasbro isn’t just for kids, though. Investors love the company’s stock. The company just announced that they will pay a dividend of $.51 in February to their shareholders, and while the stock is slightly down as of this writing, the company is having a stellar 2016.
But should you invest in Hasbro? Let’s take a look.
Hasbro (short for Hassenfeld Brothers) is a ninety-three-year-old company that makes every toy under the sun.
The company started off in the textile business, eventually becoming a toy company in the early 1940s. In the ’60s, they created G.I. Joe, which became the world’s first “action figure,” a term they invented.
Now, Hasbro owns brands like Transformers, My Little Pony, Mr. Potato Head, and much more.
They may not make Barbies, but nearly every toy you saw advertised as a kid was likely made by Hasbro. They make Lite-Brites, Nerf toys, Action Man toys, Play-Doh, and Transformers, just to name a few.
Hasbro also licenses in brands from other rights holders, like Disney and Sesame Workshop.
Hasbro makes Star Wars, Marvel, and Sesame Street toys. In order to make toys based on properties they don’t own, they pay a licensing fee a percent of their earnings) to the rights holder, while keeping the rest. Since Disney and Sesame Street-branded toys are always in demand, Hasbro makes an enormous chunk of change off of their licensed toys.
With Star Wars: Rogue One set for release today and Christmas just ten days away, Hasbro is in a great position to make a killing this season.
Rouge One is the most popular movie of December. Kids and adults alike are all but guaranteed to search toy stores high and low for items related to the film, something that tends to happen every time a Star Wars movie is released. Also, toys are one of the best-selling items during the holiday season, so the company is definitely going to see a sizable end-of-year sales increase from holiday shoppers.
Should you invest in Hasbro? They make Star Wars and Marvel action figures — two in-demand properties — along with most popular board games and other toys you probably grew up with as a kid. Couple that with exceedingly high investor and analyst sentiment, and you have a pretty “hot” stock. If this all sounds good to you, be sure to peruse through the company’s financial results and do your research before you decide whether or not investing in $HAS is right for you.