Filed under: Mattel, Inc (MAT), Stocks to Buy
As the whole nation heads out today to the local mall looking for bargains, investors can “save 30%” by purchasing Mattel (NYSE: MAT). With shares trading near a 52-week low, last week’s announcement that it is raising its dividend by 15% to 75 cents/share is intriguing. It’s no secret that the company’s share price has been sent reeling, due to the damage from excess levels of lead being found in paints used in some of its products. While this was a PR fiasco that cost the company millions in lost sales and damage control, large companies with well-known brands can generally weather this type of storm. That’s what makes the dividend raise even more interesting. In this day and age of company buybacks, the fact that the company is actually distributing more of its profits to investors is commendable.
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.
Continue reading Going shopping? Mattel is on sale
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