Hasbro (NYSE:HAS) is a leader in toys and gaming with a market cap of ~$11B and a dividend increase streak of 14 years. The company owns some of the most iconic brands in all of gaming and licenses a large number more. With the shift to digital ongoing, I feel that Hasbro is staking its claim on the future of gaming and entertainment. However, key risks remain, and competitor Mattel's (NYSE:MAT) failures should serve as a warning.
Source: Investor Presentation
Hasbro's revenues are well diversified, with only around one half coming from the US and Canada last year. Exposure to emerging markets has worked well for the company, with 8% growth this last year, notably in China and Russia. Additionally, the company is expanding in India, adding one of the largest addressable markets in the world. The toy industry is expected to increase at a 3% CAGR over the long-term, and Hasbro is well positioned to profit from that growth.
