Hasbro, Inc. (HAS), The Walt Disney Company (DIS), And Three Fun Companies for Your Portfolio

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Mattel continues its innovation with the global expansion of the Max Steel brand which will entail toys, television shows, online content, and games. Mattel’s expansion into emerging economies introduces the world to the joys of American Girl, Monster High, Barbie, and Hot Wheels while serving as catalyst for future growth.

Disney diversity

Entertainment conglomerate The Walt Disney Company (NYSE:DIS) represents the mastermind of the fun experience. Disney’s greatest strength lies in its diversity. The Walt Disney Company (NYSE:DIS) can take a set of characters and make movies, theme park rides, television shows, licensed merchandise, and websites about them.

Diversification also makes sense fundamentally for Disney. When one division lags, another one can pick up the slack. For example, Disney’s overall sales still increased 5% despite a slump in its studio entertainment segment. However, that same segment brought down The Walt Disney Company (NYSE:DIS)’s overall operating income 3% and drove free cash flow 45% lower for its most recent quarter.

The Walt Disney Company (NYSE:DIS) pays a solid dividend. In 2012, the company paid out 26% of its free cash flow in dividends. As of this writing it pays $0.75 per share per year equating to a 1.2% yield.

The Foolish conclusion

The Walt Disney Company (NYSE:DIS)’s vast portfolio of science fiction universes such as the Marvel Universe, the Star Wars Universe and any worlds that Pixar can dream up will serve as powerful catalysts for future superior shareholder gains. In addition, its ESPN subsidiaries will continue to capitalize on bringing the sports experience to the consumer household.

On the whole, these companies specialize in good memories, experiences, and entertainment. They help people forget the doldrums of daily existence. Companies that can profitably do that will make their shareholders rich.

The article 3 Fun Companies for Your Portfolio originally appeared on Fool.com and is written by William Bias.

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