Join        Login             Stock Quote

This Well-Known Mid-Cap Stock Raises Dividends Like Clockwork

 April 24, 2012 12:23 PM

(By Street Authority) "Safe" and "mid-cap" probably aren't words investors use together very often, since mid-cap stocks are generally riskier than the stock market as a whole. For instance, if you invested in iShares S&P MidCap 400 Index (NYSE: IJH), an exchange-traded fund (ETF) that tracks the S&P 400 index of medium-size U.S. companies, then you could expect the fund to be about 20% more volatile than the stock market as a whole.

You'd be doing yourself a disservice, though, if you simply wrote off all mid-cap stocks as being more risky, because not all of them are. One of my favorites, a well-known toy company that was founded in 1945 and is most famous for making Barbie fashion dolls, is actually 14% LESS volatile than the market.

I'm referring to the world's largest toy manufacturer, Mattel Inc. (Nasdaq: MAT), which also sells toys under successful brands like Fisher-Price, Hot Wheels, Tyco and Match Box. The company had overall revenue of $6.3 billion in 2011, and analysts see it rising by a solid 5% in 2012 to more than $6.6 billion.

Since a healthy dividend is one of the main things that can dampen a stock's volatility, consider Mattel's payout. The stock has a world-class dividend of $1.24 a share, which is good for a yield of about 4% based on the current share prices. So if you held $10,000 worth of Mattel, or around 300 shares, your annual payout would be $372 -- not a bad reward at all for simply holding a stock.

What's more, Mattel's payout has a history of steady growth, rising by 11.5% a year for the past five years and by 8.5% a year for the past decade. The latest increase occurred on Jan.

Next Page >>123


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageTackling China's Debt Problem: Can Debt-Equity Conversions Help?

China’s high and rising corporate debt problem and how best to address it has received much attention read on...

article imageWill Job Growth Kill The Bear-Market Signal For Stocks?

It’s all about jobs now. Actually, it’s always been about jobs. But the stakes are even higher—perhaps more read on...

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.