Mattel’s Stock Climbs on Dividend Prediction

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El Segundo toymaker Mattel Inc.’s stock rose 6 percent in Monday trading after Linda Bolton Weiser, an analyst with Los Angeles-based B. Riley & Co., upgraded Mattel to a “buy.” Weiser had previously given the stock a neutral rating, according to Bloomberg.

In her research note, Bolton Weiser suggested Mattel has enough cash that it will be able to continue paying its current dividend, even if earnings continue to be lackluster.

Given the company’s weak performance lately – its net income last year fell 45 percent from the previous year – some Mattel watchers had lately suggested the firm should cut its dividend. Concerns over a looming dividend cut, coupled with weak earnings, helps explain why Mattel stock had lost about 40 percent of its value over the past year.

Mattel shares closed Monday at $24, up $1.35 or 6 percent. Bolton Weiser did not immediately return a request for comment.

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