The Walt Disney Company (DIS) is one of the largest diversified international companies specializing in entertainment, media, parks, resorts, and various consumer products. Disney owns some of the most recognized TV channels in the U.S., including Disney, ABC, and ESPN.
The company also operates highly popular amusem*nt parks around the world and produces movies, cartoons, and shows for kids and adults. With its highly recognized brand and a very profitable sports channel, Walt Disney was able to grow its net income to $12.6 billion in 2018. However, the company suffered a loss of $2.83 billion in 2020 and $2.02 billion in 2021. This was due to the impact of the COVID-19 pandemic: the parks, experiences, and products segment of the company brought in around 10 billion U.S. dollars less in 2020 than in 2019.
As a result of its successful financial performance over the past, the company was able to consistently pay and increase dividends year after year, making Walt Disney an attractive option for income-seeking investors.
However, the company suspended its semi-annual cash dividend in July 2020 due to the impact of the COVID-pandemic, and has yet to reinstate it.
Key Takeaways
- Disney's dividend over the last decade was strong as the company has a payout ratio of less than 28%.
- The semi-annual dividend of $0.88 a share was suspended in July 2020 due to the COVID-related economic impact.
- The annualized dividend yield on Disney's common stock would have been 1.22% as of the market close on Nov. 16, 2020.
Disney Dividend Policy
Until 2020, Disney consistently paid dividends over 40 years, and it had a track record of increasing its dividend. Disney raised its dividend per share from $0.84 to a semi-annual cash dividend of $0.84 per share in 2018 until it was suspended in 2020.
The company paid annual dividends (i.e. once per year) for the three years prior to 2015 and quarterly before that. Disney increased its dividend by 33% since going to a semi-annual pay structure. Over the past, Disney's payout ratio has ranged from 15% and 30%. The payout ratio was roughly 28% before the suspension of the dividends.
While Disney didn't disclose how it determined its dividends, the payouts were likely contingent on the company's performance and especially its ability to generate sufficient operating cash flows to cover its investment and financing requirements.
Disney Dividend Yield
Disney's dividend yield was dependent on the dividend policy established by the company's board of directors and how the stock price changes. Over the years preceding the pandemic, Disney's dividend yield ranged from 1.2% to 1.8%, which was low compared to its average media peers. Disney's low dividend yield could be attributed primarily to its stock appreciation and the company's emphasis on stock buybacks rather than dividends.
Some companies, such as Disney, prefer generating shareholders' returns through share buybacks rather than paying cash dividends since buybacks typically defer taxes for investors.
Will Disney Dividend Yield Be Reinstated?
In the 2019 fiscal year, the last before the pandemic disrupted the business, Disney paid cash dividends of $2.9 billion. In 2020 the dividend was suspended to conserve cash and ensure the company's survival. As of August 2021, all of Disney's theme parks opened again and its other businesses came back online, which makes investors believe that Disney could reinstate its dividend next quarter.
Disney CFO Christine McCarthy declared the company's intention to pay a dividend again: "In light of the ongoing recovery from the COVID-19 pandemic as well as our continued prioritization of investments that support our growth initiatives, the board decided not to declare or pay a dividend for the first half of fiscal 2021. Longer-term, we do anticipate that both dividends and share repurchases will remain a part of our capital allocation strategy."
If Disney decides to pay a dividend again, it isn't required to be the same figure. It could be higher or lower, depending on the company's operating results and balance sheet.
Disney's Income, Debt and Dividend Over the Years
Disney's television and movie business lines coupled with its extensive franchising operations enabled the company to increase its net income from $7.5 billion in 2014 to over $12 billion in 2018, before the pandemic impacted the company and change the figures dramatically:
- Net income for the quarter ending July 2, 2022, was $1.409 billion, a 53% increase from the same quarter the previous year.
- Annual net income for the twelve months ending Oct. 2, 2021, was $1.995B, a substantial increase after losing $2,864 billion the previous year.
- According to Walt Disney's most recent annual statement as of Oct. 2, 2021, total borrowings is at $48,540 billion.
The company did not declare a dividend in FY 2021, but in previous years they averaged about $0.88 cents per share.
Disney's Prospects
Disney enjoys a highly favorable position within media networks with its premier channels ESPN and ESPN2, which have exclusive deals with the National Football League. The company's sports channels charge some of the highest fees among similar channels and generate some of the highest revenue streams from advertising.
The Disney Channel is also one of the most trusted channels among parents who subscribe to media content for their kids. Yet, Disney's broadcasting business is continuing to see some softness as consumers drop cable subscriptions and switch to Internet TV offerings. This development is likely to generate some headwinds for Disney and may slow down the company's growth in operating cash flows.
Disney is also generating an increasing amount of revenue from its characters by issuing franchising rights. As the company diversified its characters and franchises by purchasing cartoon and movie studios, such as Pixar, Lucasfilm, and Marvel, Disney has been able to expand its portfolio of characters and appeal to a much broader audience. Disney has also launched a Netflix (NFLX) competitor with Disney+. As the company continues creating movie hits and generating growing franchising sales, these revenue streams could offset any declines in Disney's broadcasting business and provide a sound foundation to restart its dividends. Although management has reiterated its commitment to doing so, a date hasn't been announced.
Correction—Sept. 4, 2022. A previous version of this article incorrectly computed Disney's percentage change in annual net income in FY 2021.
FAQs
Disney has declared that it aims to distribute a dividend by the end of calendar year 2023. While investors shouldn't expect a dividend on par with previous years, the reinstatement of the dividend, even a small one, can be taken as a positive sign for Disney after several years of turmoil due to the pandemic.
Has Disney stock ever paid a dividend? ›
Walt Disney Company, The Dividend related ratios:
Last dividend date: 2019-12-04. Current Dividend Yield: 1.9% Annual dollar dividend payment: $1.76.
Is Disney a good stock to buy 2023? ›
Disney's low stock price, along with recovering theme park revenues, a stronghold in streaming, and a respected CEO at the helm add up to a good 2023 buying opportunity. The consensus price target for Disney is $124.05.
Why is Disney stock dropping 2023? ›
UPDATED: Shares of Disney slipped as much as 9% in trading Thursday after the media conglomerate reported earnings for the first three months of 2023.
Is Disney dividend coming back? ›
Reinstating the dividend is a sign of confidence from management and the board. After suspending its dividend at the start of the COVID-19 pandemic, Walt Disney's (DIS -0.65%) management recently said it thinks it'll be ready to start returning cash to shareholders again in the near future.
Will Disney bring back their dividend? ›
This recovery of the company's profitable theme-park business, which was punched in the gut by COVID-19, is one of the key reasons for Disney's decision to reinstate its dividend. But management's restructuring to enhance efficiency, along with a reduction to its workforce to create a leaner organization, is also key.
What are the 3 dividend stocks to buy and hold forever? ›
7 Dividend Stocks to Buy and Hold Forever
| Stock | Forward Dividend yield |
|---|
| Cisco Systems Inc. (ticker: CSCO) | 3.2% |
| Verizon Communications Inc. (VZ) | 7.3% |
| Honeywell International Inc. (HON) | 2.2% |
| Goldman Sachs Group Inc. (GS) | 3.1% |
3 more rowsThe last dividend payment was in 2020
But due to COVID-19, in May 2020, the entertainment company announced it would forgo the next cash dividend payment, and it hasn't resumed its dividend payments since then.
What is the latest dividend for Disney? ›
Historical dividend payout and yield for Disney (DIS) since 1989. The current TTM dividend payout for Disney (DIS) as of June 08, 2023 is $0.00. The current dividend yield for Disney as of June 08, 2023 is 0.00%.
How high is Disney stock expected to go? ›
DIS Stock 12 Months Forecast
Based on 18 Wall Street analysts offering 12 month price targets for Walt Disney in the last 3 months. The average price target is $122.69 with a high forecast of $147.00 and a low forecast of $103.00. The average price target represents a 33.04% change from the last price of $92.22.
Walt Disney has received a consensus rating of Buy. The company's average rating score is 2.84, and is based on 16 buy ratings, 3 hold ratings, and no sell ratings.
Will Disney stock ever recover? ›
"We believe the stock will recover much of what was lost over the past few years. Disney's Return on Invested Capital (ROIC), a key measure of profitability, is already starting to recover and we expect it to return to the 12% to 13% range, compared to its current level of about 2% to 3%."
What will Disney stock be worth in 5 years? ›
What will the DIS price be in 5 years and 10 years – forecast by years
| Year | Price in the middle of the year | Price at the end of the year |
|---|
| 2023 | $120.68 | $160.91 |
| 2024 | $200 | $266.66 |
| 2025 | $227.58 | $303.44 |
| 2026 | $344.81 | $459.75 |
8 more rowsDisney stock price stood at $91.93
| Year | Mid-Year | Year-End |
|---|
| 2025 | $136.48 | $156.95 |
| 2026 | $177.13 | $197.06 |
| 2027 | $208.75 | $227.52 |
| 2028 | $244.00 | $252.56 |
8 more rowsDIS is relatively overvalued on two common measures compared to its competitors. Currently, DIS is trading at an EV-to-EBITDA multiple of 18.46, which is the highest among its peers.
Has Disney suspended dividends? ›
As a result of the impact of the Covid pandemic, we made the decision to suspend the dividend in the spring of 2020. Now that the pandemic impacts to our business are largely behind us. We intend to ask the Board to approve the reinstatement of a dividend by the end of the calendar year,” he said.
Does Disney stock have a future? ›
Stock Price Forecast
The 22 analysts offering 12-month price forecasts for Walt Disney Co have a median target of 125.00, with a high estimate of 147.00 and a low estimate of 94.00. The median estimate represents a +35.91% increase from the last price of 91.97.
What stock pays the highest dividend? ›
No stock in the S&P 500 has a higher dividend yield than independent oil and gas company Pioneer Natural Resources (PXD).
When did Disney pay its last dividend? ›
Dividend History for Walt Disney (DIS)
| Ex-Div. Date | Amount | Pay. Date |
|---|
| 12/13/2019 | $0.88 | 1/16/2020 |
| 7/5/2019 | $0.88 | 7/25/2019 |
| 12/7/2018 | $0.88 | 1/10/2019 |
| 7/6/2018 | $0.84 | 7/26/2018 |
10 more rowsWhat Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.
Walt Disney stock (symbol: DIS) underwent a total of 6 stock splits. The most recent stock split occured on June 13th, 2007.
How do you make $1000 a month in dividend stocks? ›
The Ideal Portfolio To Make $1,000 Per Month In Dividends
Each stock you invest in should take up at most 3.33% of your portfolio. “If each stock generates around $400 in dividend income per year, 30 of each will generate $12,000 a year or $1,000 per month.”
What are the safest dividend stocks to buy right now? ›
Safe High Yielding Stocks
| Company | Ticker | Payout Ratio |
|---|
| Best Buy | BBY | 50% |
| Comerica | CMA | 36% |
| HP | HPQ | 33% |
| Regions Financial | RF | 35% |
5 more rowsMay 22, 2023
10 Best Dividend Stocks To Buy Now
| Dividend ETFs | Dividend Yield |
|---|
| Texas Instruments Inc. (TXN) | 2.8% |
| Lockheed Martin Corporation (LMT) | 2.7% |
| Merck & Company, Inc. (MRK) | 2.6% |
| Air Products and Chemicals, Inc. (APD) | 2.6% |
6 more rowsJun 1, 2023
The losses were driven by an exodus from the South Asia-focused Disney+ Hotstar offering after it lost the streaming rights to the Indian Premier League cricket matches. Those subscribers are seen as less valuable to Disney as they generate lower average revenue per user.
Why has Disney stock been declining? ›
Walt Disney shares declined sharply Wednesday after the company reported its earnings for the quarter ended March 2023, with a fall in Disney+ subscribers. The entertainment company said that during the quarter, total Disney+ subscribers declined by 4 million to 157.8 million.
Why has Disney stock declined? ›
Walt Disney stock was falling Thursday morning after the entertainment company reported a surprise decline in Disney+ subscribers during the fiscal second quarter.
How many times a year does Disney pay dividends? ›
The company paid annual dividends (i.e. once per year) for the three years prior to 2015 and quarterly before that. Disney increased its dividend by 33% since going to a semi-annual pay structure. Over the past, Disney's payout ratio has ranged from 15% and 30%.
What is Tesla stock dividend? ›
Historical dividend payout and yield for Tesla (TSLA) since 1971. The current TTM dividend payout for Tesla (TSLA) as of June 08, 2023 is $0.00. The current dividend yield for Tesla as of June 08, 2023 is 0.00%.
What dividend does Google pay? ›
(GOOG) No Dividend | Seeking Alpha.
Interactive chart of historical net worth (market cap) for Disney (DIS) over the last 10 years. How much a company is worth is typically represented by its market capitalization, or the current stock price multiplied by the number of shares outstanding. Disney net worth as of June 08, 2023 is $169.06B.
What is the true value of Disney stock? ›
As of 2023-06-10, the Intrinsic Value of Walt Disney Co (DIS) is 117.09 USD. This value is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 91.93 USD, the upside of Walt Disney Co is 27.4%. The range of the Intrinsic Value is 80.32 - 200.88 USD.
What will Disney stock price be in 2030? ›
Disney Stock Forecast(2023-2060)
| Predicted Years | Minimum Price | Average Price |
|---|
| 2030 | $235 | $245 |
| 2035 | $280 | $291 |
| 2040 | $310 | $321 |
| 2050 | $430 | $435 |
4 more rowsMay 31, 2023
Discounts of 25%+ for overnight says in Disney Hotels. 15% off on 1 day Disney park passes as well as annual passes. 15% discount on products purchased in person in select Disney Stores. VIP cards, guided tours & concierge-like service.
How much do you need to invest in Disney stock? ›
Buy stock directly from Disney
With Disney's direct stock purchase plan, you can start investing by completing an enrollment form and making either an initial cash investment of $175 or by authorizing monthly deductions of at least $50 from a bank account to purchase Disney's stock.
Is Disney a good long term stock? ›
At a 4-star rating, Disney stock is undervalued compared with our fair value estimate. Our updated $145 fair value estimate reflects slower subscriber growth and lower losses from streaming. We expect average annual top-line growth of 6% through fiscal 2027.
Is it smart to invest in Disney stock? ›
At a 4-star rating, we believe Disney stock is undervalued when compared with our fair value estimate. Our updated $155 fair value estimate for Disney reflects the realigned segments and lower losses from streaming. We expect average annual top-line growth of 7% through fiscal 2027.
What is the highest Disney stock has ever been? ›
Disney - 61 Year Stock Price History | DIS
- The all-time high Disney stock closing price was 201.91 on March 08, 2021.
- The Disney 52-week high stock price is 126.48, which is 42.8% above the current share price.
- The Disney 52-week low stock price is 84.07, which is 5.1% below the current share price.
While it's easy to imagine how diversifying to avoid that risk is smart, there's no hard and fast number of stocks investors should own. Instead, researchers have generally concluded that owning 20 or more stocks is best for reducing the risk one lousy bet swamps a portfolio.
What is the Disney stock price forecast for 2028? ›
By the end of the year, 2028, DIS is expected to be trading at around $328 per share, as per Walt Disney stock price predicton.
Although it was a private company initially owned by two brothers, it has since expanded thanks to its IPO back in 1955. Today, the Walt Disney Company is owned by a multitude of individual and institutional investors who've brought a ton of resources, and accountability to this brand.
What is the outlook for Amazon stock? ›
Based on short-term price targets offered by 37 analysts, the average price target for Amazon comes to $143.54. The forecasts range from a low of $111.00 to a high of $270.00. The average price target represents an increase of 15.53% from the last closing price of $124.25.
Is Disney a high risk stock? ›
Disney Investment Opportunity
Walt Disney has a volatility of 1.9 and is 2.18 times more volatile than NYSE Composite. 16 of all equities and portfolios are less risky than Disney.
Will Disney pay dividends in 2023? ›
Disney has declared that it aims to distribute a dividend by the end of calendar year 2023. While investors shouldn't expect a dividend on par with previous years, the reinstatement of the dividend, even a small one, can be taken as a positive sign for Disney after several years of turmoil due to the pandemic.
Who holds the most Disney stock? ›
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Walt Disney. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc.
What will Disney dividend be? ›
"The Walt Disney Company Announces Semi-Annual Cash Dividend of $0.84 Per Share."
Which company will give dividend in 2023? ›
Dividends Declared
| COMPANY NAME | DIVIDEND | DATE |
|---|
| Crest Ventures | Final | 29-05-2023 |
| Tega Industries | Final | 30-05-2023 |
| Apollo Hospital | Final | 30-05-2023 |
| Godawari Power | Final | 22-05-2023 |
46 more rowsFor 2023, Walt Disney World ticket prices start at $109 per person and max out at $189. However, this doesn't include a 6.5% sales tax – or add-on options like Park Hopper, Memory Maker, or Water Park and Sports. With these extras, ticket prices can really add up.
What are Disney q1 earnings for 2023? ›
FIRST QUARTER EARNINGS FOR FISCAL 2023
Diluted earnings per share (EPS) from continuing operations for the quarter increased to $0.70 from $0.63 in the prior-year quarter. Excluding certain items(1), diluted EPS for the quarter decreased to $0.99 from $1.06 in the prior- year quarter.
Is Disney stock a good buy now? ›
At a 4-star rating, we believe Disney stock is undervalued when compared with our fair value estimate. Our updated $155 fair value estimate for Disney reflects the realigned segments and lower losses from streaming. We expect average annual top-line growth of 7% through fiscal 2027.
10 Best Dividend Stocks Today
- Cisco CSCO.
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Comparison Results
| Name | Price | Price Change |
|---|
| IBM International Business Machines | $136.42 | $1.12 (0.83%) After 0.16% |
| CVX Chevron | $157.33 | $1.53 (-0.96%) After 0.02% |
| EOG EOG Resources | $113.92 | $2.33 (-2%) After 0.16% |
| ET Energy Transfer | $12.61 | $0.13 (-1.02%) After 0.08% |
5 more rowsBank of America's Best Growth Stocks of 2023
| Company | Forward Sales Growth Next Year |
|---|
| Progressive (PGR) | +13.0% |
| SolarEdge Technologies (SEDG) | +22.3% |
| T-Mobile (TMUS) | +3.5% |
| United Rentals (URI) | +4.5% |
6 more rowsJun 1, 2023
Walt Disney (DIS) stock fell hard after the company's streaming services units missed subscriber growth estimates in its late Wednesday earnings report. Meanwhile, CEO Bob Iger did not shy away from comments regarding the company's battle against Florida regulators, underscoring Disney's lawsuit against Florida Gov.
Is 2023 100 years of Disney? ›
The world over celebrates 100 Years of the Walt Disney Company in 2023 which promises to be a year of celebration. Likewise, not only to celebrate a century of animation greatness but also to honor all Disney company properties. In other words, don't take your party hat off quite yet.
How much will Disney be worth in 2030? ›
However, The House of Mouse has a major growth driver in its streaming segment that could help it reach that target. In this segment from "The Five," recorded on Dec. 14, Fool.com contributors Trevor Jennewine and Parkev Tatevosian discuss Disney's chances of surpassing a $1 trillion market cap by 2030.
Is Disney doing well financially? ›
Overall, Disney's diluted earnings per share came in at 93 cents, meeting the consensus forecast of analysts polled by Refinitiv. Revenue hit $21.82 billion, slightly above analyst projections of $21.79 billion.
Is Disney expected to have good earnings? ›
Disney (DIS) is projected to report strong earnings growth for the first three months of the year as the entertainment giant adds direct-to-consumer (D2C) subscriptions at a rapid pace while revenue from theme parks recovers on an uptick in post-pandemic travel.
Will Disney prices go down in 2023? ›
1-Day tickets in September 2023 start at $109 which is the same as in 2022, but they go up to $144 which is a $4 increase. The average price also increased from $121.60 in 2022 to $126.50 in 2023, almost $5 on average.
