Top Picks 2016: Mattel

01/22/2016 7:00 am EST

Focus: STOCKS

George Putnam

Editor, The Turnaround Letter

Our Top Pick for income-oriented investors for 2016 is one of the world’s leading toymakers, suggests George Putnam, editor of The Turnaround Letter

Mattel (MAT) controls a stable of iconic toy brands such as Barbie, Hot Wheels, and Fisher Price.

However, over the last few years the company failed to keep up with shifts in consumer preference toward electronic playthings and other innovations. 

A new CEO took over in January 2015 and he has shaken up the product development and marketing teams to make the company more creative and responsive to market opportunities.

They are also forging partnerships with innovative companies outside the toy industry, such as a collaboration with Google (GOOG) that uses virtual reality technology to bring the classic Viewmaster toy into the 21st century.

In addition, the management team is also working to take costs out of the business and expand brand’s presence in international markets. 

Early returns on these efforts look promising, but the turnaround at Mattel is still a work in progress. 

However, with a yield above 5%, you get compensated nicely while you wait for the changes to boost the stock price.

Subscribe to The Turnaround Letter here...

Click Here for More 2016 Top Stock Picks

Related Articles on STOCKS