There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

November 19, 2009 - Hasbro, Inc. (HAS-NYSE) engages in the design, manufacture, and marketing of games and toys. The company principally provides children's and family leisure time and entertainment products and services. It offers various games, including traditional board, card, hand-held electronic, trading card, roleplaying, and DVD games, as well as electronic learning aids and puzzles.

It makes PLAYSKOOL, TRANSFORMERS, MY LITTLE PONY, LITTLEST PET SHOP, TONKA, G.I. JOE, SUPER SOAKER, MILTON BRADLEY, PARKER BROTHERS, TIGER, and WIZARDS OF THE COAST brand names. The company markets to various customers, including wholesalers, distributors, chain stores, discount stores, mail order houses, catalog stores, department stores, and other retailers, as well as Internet-based e-tailers.

It has a strategic licensing agreement with Electronic Arts Inc. (EA), which provides EA with the worldwide rights to create digital games for various platforms, including mobile phones, personal computers, and game consoles, as well as with Marvel Entertainment Inc. and Spider-Man Merchandising, LP to manufacture toys and games; and a strategic relationship with Universal Pictures to produce four motion pictures based on certain company's brands.

Hasbro sells through its own sales force and distributors primarily in the United States, Canada, Mexico, Europe, the AsiaPacific, Latin America, and South America. The company was founded in1923 and is headquartered in Pawtucket, Rhode Island.

We're talking Monopoly here. The game that is, one of the mainstays of Hasbro for decades. Much like G.I. Joe, and My Little Pony, these games and toys have endured for generations, giving the company core products that produce continuous revenues. Did I mention Transformers? Hasbro owns that toy (franchise) as well. While the economy has suffered, Hasbro hasn't, as sales and earnings keep rising.

Total revenues in 2006 were $3.151 billion, then reached $3.837 billion, followed by $4.021 billion last year. This year, 11 analysts estimate the final tally at $4.03 billion. Next year, they see a slight dip to $4.01 billion. International sales were 42% of revenues last year.

As for earnings, they've been strong since 2001 when they were 35 cents a share, then went to 62 cents a share, followed by $1.20, dipped to $1.08. In 2005, they went to $1.22, then $1.24, then jumped to $2.05 only to go down slightly to $2.00 last year. This year, they'll be up again, if the 15 analysts' consensus is correct: $2.19. Next year, they see a little lower at $2.13. That trimming is mostly due to new investments the company will make in television ventures with some estimates of the cost at 25 cents a share.

How powerful are toy figures? Here's one example: G.I. Joe. There was a movie made this year about the action figure called G.I. Joe: Rise of Cobra. It didn't haul in the money that the latest Transformers movie did, but it was still respectable. But the movie is really just a large advertisement for the action figure itself. Analysts see sales for just this figure and associated products at $100 million this year, more than triple that of last year's numbers. It's coming out in DVD for the holidays (the perfect Christmas gift?) which will help boost sales of the toy as well. And the movies keep coming. Next year, a new Iron Man will be released. And there's another Toy Story from Disney coming to a theatre near you.

Hasbro isn't resting on its success. It's updating its toy and game portfolio, extending its products' lives by pursuing new media, new ways to play with toys and games over consoles, mobile phones, and Internet platforms.

More numbers: Trailing P/E is 15 while the Forward P/E is 14. Price to sales is 1.03. Price to book is 2.72. Book value is $10.70. Operating margin for the last 12 months was 12.66% while the Profit margin was 7.72%. Return on equity was 21.30%. There's $297 million sitting in the bank in cash. That's $2.15 a share. Total debt is $1.17 billion or about 43% of capital. There are 138.41 million shares outstanding with a float of 124.72 million. Alan G. Hassenfeld owns 10.1% of the stock. He's Chairman of the Board. Other insiders own .4% of the stock. Institutions hold 86% of the stock. There is an annual dividend of 80 cents a share, up from 76 cents last year which was raised from 60 cents in 2007.

Conservative investors should like this stock. Hasbro's core product line continues to generate revenues through new media such as television, the Internet, consoles, cell phones, and movies. Furthermore, the toy industry tends to hold up well during economic hard times, as demonstrated yet again last year and this.

Company Web site: www.hasbro.com

 - Ted Allrich