Mattel Stock Rises; Cartoon Deal Unveiled

Mattel Inc., the maker of Hot Wheels cars and other toys, is on a roll.

Shares of Hawthorne-based Mattel on Wednesday rose 50 cents to $24--the highest level in eight years--after the company declared its first stock dividend since 1983. The dividend, payable on July 2 to shareholders of record on June 15, will be 3 cents a share.

Mattel’s stock hovered around $10 early last year on the New York Stock Exchange, but generally has been climbing ever since.

The dividend stems from the company’s improved financial performance and “our continuing positive outlook,” said John W. Amerman, Mattel’s chairman and chief executive, in a news release.

Mattel previously disclosed that, during this year’s first quarter, its profits climbed 95% to $8.4 million on sales that rose 20% to $234 million. The company lost a total of $93.5 million in 1986 and 1987, before beginning its comeback.

Separately, Mattel announced that it has reached a licensing agreement with 20th Century Fox to market a line of action figures and related products based on the characters in the hit TV animation show, “The Simpsons.”

In other financial matters, the Hawthorne-based company disclosed that it would repay its $75 million in 10 7/8% notes when they come due on July 15. In addition, Mattel said its board authorized the repurchase of up to 500,000 shares on the open market over the next year for the company’s stock option plan.