With retailers offering enticing discounts to shoppers this holiday season, I would expect Mattel to benefit greatly from this. Additionally, more and more of its sales come from outside the US, and with growing disposable income throughout the world, it stands to reason that people in developing countries are also going to spend much more money on holiday presents than ever before.
With the stock trading around $20, that gives a dividend yield of 3.3%. As we all know, markets tend to overshoot in both directions. This seems like a clear case where the stock got hit more than it should have, and by increasing its dividend, the company is confirming this.
Like my wife's Barbie collection, which she has since passed on to our daughter, this looks like a stock for the long run that will provide lots of profits.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer holds no position in any stock mentioned as of 11/23/07.
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Reader Comments (Page 1 of 1)
1-22-2008 @ 4:57PM
janet said...
It's sad when america puts more value on trying to save a few bucks than protecting our children. we should ban china but that will never happen because of the money that is paid politically and otherwise. america will no longer be the superpower it is now unless we quit sending our jobs over to china. we've sold our country and our kids just to save money.