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2.5 Reasons to Hold on to Hasbro Stock

By Chuck Saletta – Feb 11, 2014 at 6:05PM

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Solid balance sheet, covered and growing dividend, and a valuation that's not too stretched.

Hasbro (HAS 0.11%) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers two-and-a-half reasons why he's holding on to Hasbro's stock despite the 48% rise since he bought those shares a little more than a year ago.

Why dividends rule
One of the reasons Hasbro made the cut for the iPIG portfolio is also one of the dirty secrets that few finance professionals will openly admit: Dividend stocks as a group handily outperform their non-dividend paying brethren.

The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

Summary:

  • Healthy balance sheet, with a debt-to-equity ratio of around 0.8.
  • Covered and growing dividend, with a 61% payout ratio excluding restructuring and a recent 8% increase to that dividend.
  • And the half-reason: Hasbro's valuation isn't too far stretched to make it a compelling sell based on price.

To follow the IPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the IPIG portfolio, simply click here.

Chuck Saletta owns shares of Hasbro. The Motley Fool recommends Hasbro. The Motley Fool owns shares of Hasbro.

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Stocks Mentioned

Hasbro Stock Quote
Hasbro
HAS
$63.38 (0.11%) $0.07

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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