5-Star Stocks Poised to Pop: Hasbro

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, toy maker Hasbro (NAS: HAS) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Hasbro's business and see what CAPS investors are saying about the stock right now.

Hasbro facts

Headquarters (Founded)Pawtucket, R.I. (1923)
Market Cap$4.5 billion
IndustryLeisure products
Trailing-12-Month Revenue$4.2 billion
ManagementCEO Brian Goldner (since 2008)
CFO Deborah Thomas (since 2009)
Return on Equity (Average, Past 3 Years)25.6%
Cash/Debt$207.1 million / $1.4 billion
Dividend Yield3.5%
CompetitorsJAKKS Pacific
Mattel

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,966 members who have rated Hasbro believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those bulls, All-Star truthisntstupid, tapped the stock as a solid income opportunity:

Hasbro makes many classic toys: GI Joe, Play-Doh, Tonka Toys, board games under the Milton Bradley and Parker Brothers brands including Monopoly and Trivial Pursuit and dozens more.

At my start price of $32.39, [Hasbro] offered a 3.7% dividend yield with a 39% dividend payout ratio. That dividend is going nowhere but up. ...

It has been on an extended dividend-raising spree for the last couple years. Its 5-year average dividend yield is 2.3%, considerably less than its current yield. ...

Did I look at the debt? When I see a quick ratio of 1.5, a current ratio of 2.3, and interest coverage of 6.3, I've seen enough. All that and a gross margin of 53% tells me their debt isn't likely to interfere with paying and continuing to increase that dividend.

Of course, despite its five-star rating, Hasbro may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 11 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Hasbro and Mattel. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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