Dividend Increase: Walt Disney Company

ID-100130817-300x200 Dividend Increase: Walt Disney Company

Walt Disney Company (DIS) just declared $0.84 semi-annually dividend. This is an increase of 7.7% from $0.78.

I own 23 shares, so this will increase my annual dividend income by $2.76 to $4,569.42

I updated both my Passive Income page as well as my Portfolio page to reflect the changes.

My Thoughts:

I bought and wrote about DIS in great detail. I truly believe that this company is a forever company. I was expecting a double-digit dividend increase, but I am happy this. They are most likely being conservative because of all of the upcoming investment ideas Disney has in the works.

The last dividend increase was 9.9% in 2016. The year before that it was 15% in 2015. Next year dividend raises I expect something around 10%.

I would love more shares of DIS, however, I would buy more if it gets under $100. I still find the company to be undervalued at current prices, and I would recommend a BUY to investors that do not have any shares of DIS currently.

Liking the dividend increase?

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Comments

  1. TBH I was pretty disappointed with the size of this increase.

    Based on their current cash flows and balance sheet, the company could easily afford to raise the dividend a lot more than 7.7% (assuming cash flow remains flat…forget about growth).

    That tells me management might be pessimistic about future cash flows, which fine…if there’s trouble ahead I’d rather them be conservative than get out over their skis. But still…that’s a bummer.

    Oh well. So it goes. It’s better than a stick in the eye that’s for sure.

    • Hi catfishwizard. thanks for visiting and for commenting! I agree that the company can easily afford to raise the dividend more than 7.7%. I think they will start that higher increase in the coming years. Thanks again for visiting!

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