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Mattel (NASD:MAT) | New Stock Holding Of The Dividend Yield Passive Income Portfolio


Last Friday I put Mattel shares into the dividend yield passive income portfolio (DYPI). I bought 40 shares of the toymaker who generates 67.72 percent of net sales in Americans countries.

Mattel has a market capitalization of 12.50 billion and is the dominating and leading company within the toys and games industry. Mattel designs, manufactures, and markets various toy products. Its products comprise fashion dolls and accessories, vehicles and play sets, and games and puzzles.

The current P/E ratio of the company is 15.12 and the expected price to earnings ratio amounts to 13.11. The dividend yield has a value of 3.4%. This met my criteria of yield and fair price. The company is also growing. Earnings are expected to grow by 17.42% this year, 9.88% next year and finally 9.05% for the next five years.

Mattel is the little bit higher valuated than rival Hasbro but Mattel has lower debt ratios than the second biggest industry player Hasbro. So I think both valuations are not far away.

The 40 shares will give us an additional dividend income of 50 bucks per year. The full stake costs $1,458 which represents now around 1.5 percent of the full DYPI-Portfolio.

The current portfolio yield is 3.52 percent. As of now I invested $20,440 into stocks within the recent four month or so. The average yield of the portfolio is at 3.59%.

Since I funded the portfolio virtually with 100,000, the whole net worth is up 1.83% since October 2012. This is an underperformance against the broad market but as I told earlier, it could happen because I buy slowly stocks and if the market goes sharply up I will loose performance.

I don’t care about current market sentiments. In situations of highly valuated markets my strategy could fail in the short-run. Not enough, I make stock picking in order to avoid expensive stock buys.

I try to put every Friday one company into the DYPI-Portfolio. As of now I have around $80,300 of free cash for additional stock acquisitions. I plan to close the DYPI-Portfolio by the end of the year 2013 with around 50-70 stock holdings. The estimated dividend income should be around $3,000 – $4,000. This should be realistic in my opinion.

The strategy is not to make fast money or to get quick rich. If you like to make fast money by stock trading you should read other blogs, maybe something about options, derivatives or penny stocks.

Trading of dividend stocks will not make you soon rich - I have not even reached. But I found out that it is possible to realize a double-digit return over a long period of time. Over the recent 10 years I have achieved this performance for my own real trading accounts. Read more in my about page.

A 8% return would double your net worth in around 10 years. 3% or more could be generated by dividends alone. That's called the dividend yield ratio. 

My real accounts have a current yield of around 3%. That’s not high but I have real problems to find high-quality stocks that are fairly priced. If you know some, please let me know. I ever look for great investment opportunities and share my ideas with all my readers on the internet.

Not Enough, I have yields on cost of 5%-7%. When I bought the stocks they paid only 3% in dividends but my target investments increased the dividends payments very soon over the upcoming years and now I have a yearly return which is twice as high the amount when I bought the stock.

Do you own Mattel shares? What do you think about the company? Would you buy them now? Please let me know and leave a comment in the box below.


Sym
Name
P/E Ratio
Dividend Yield

Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
N/A
4.37

28.90
50
$64.00
$1,471.00
LMT
Lockheed Martin C
10.74
4.44

92.72
20
$83.00
$1,878.00
INTC
Intel Corporation
9.3
4.08

21.27
50
$43.50
$1,058.00
MCD
McDonald's Corpor
17.07
3.17

87.33
15
$43.05
$1,347.73
WU
Western Union Com
6.7
3.14

11.95
100
$42.50
$1,402.00
PM
Philip Morris Int
17.17
3.82

85.42
20
$65.58
$1,730.40
JNJ
Johnson & Johnson
23.17
3.39

69.19
20
$48.00
$1,431.00
MO
Altria Group Inc
16.97
5.22

33.48
40
$68.00
$1,301.60
SYY
Sysco Corporation
16.89
3.43

31.65
40
$43.60
$1,274.00
DRI
Darden Restaurant
12.81
3.19

46.66
30
$42.90
$1,393.80
CA
CA Inc.
11.49
4.42

21.86
50
$50.00
$1,152.50
PG
Procter & Gamble
19.21
3.21

68.72
25
$55.28
$1,727.25
KRFT
Kraft Foods Group
13.91
1.1

44.41
40
$20.00
$1,814.80
MAT
Mattel Inc.
15.23
3.38

36.45
40
$49.60
$1,458.00
















$719.01
$20,440.08
















Average Yield
3.52%
















Yield On Cost
3.59%

4 comments:

  1. I see that $MAT has been on nice run over the last five years up over 250% and just 4% away from its 10 year high. I don't own any shares but I see that 90% of outstanding shares are owned by Institutions. If that means anything to you it's just something I look at 

    ReplyDelete
  2. TroubleMaker1/07/2013

    Tom, I was wandering if you had a list of dividend yielding, companies that are currently buying back shares or plan to start a buy back plan. Off the top of my head I know $IBM is doing it. There is a lot of cash rich companies out there 

    ReplyDelete
  3. Anonymous1/09/2013

    Tom, when you make investments do you consider institutional ownership ? I've notice company's with high institutional ownership have a nice smooth rise in stock price like $MAT n the two stocks I mention earlier. And when institutions start selling shares the stock becomes more violent example $aapl 

    ReplyDelete
  4. no i don't consider insider and institutional figures. I only believe in fundamentals of the company and the strong market position.

    ReplyDelete

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