BURBANK, Calif. - The Walt Disney Company (NYSE: NYSE:DIS) has announced an increase in its annual cash dividend to $1.00 per share, marking a significant rise from the previous year's dividend of $0.75 per share. This 33% increase in shareholder payout will be distributed in two equal installments. The entertainment giant, currently valued at $212 billion, has shown strong momentum with a 29.5% year-to-date return, according to InvestingPro data.
Shareholders on record as of December 16, 2024, will receive the first payment of $0.50 per share on January 16, 2025. The second installment will be paid to shareholders on record as of June 24, 2025, with the payable date set for July 23, 2025.
Robert A. Iger, Chief Executive Officer of The Walt Disney Company, attributed this increase to a successful year for the company, highlighting strategic initiatives that have enhanced quality, innovation, efficiency, and value creation. Iger expressed confidence in the company's future, stating, "With the company operating from a renewed position of strength, we are pleased to increase the dividend for shareholders while continuing to invest for the future and drive sustained growth through Disney's world-class portfolio of assets." InvestingPro analysis suggests the stock is currently trading near its Fair Value, with 15 analysts revising their earnings estimates upward for the upcoming period.
The Walt Disney Company, a Dow 30 component, reported annual revenues of $91.4 billion in Fiscal Year 2024, with a healthy gross profit margin of 35.75%. The company operates across three business segments: Entertainment, Sports, and Experiences, positioning it as a diversified leader in the international entertainment and media landscape. For deeper insights into Disney's financial health and growth prospects, investors can access comprehensive analysis through InvestingPro's detailed research reports, available for over 1,400 US stocks.
The press release also included forward-looking statements subject to change based on future events and business performance as perceived at the time of the statements. It cautioned that actual results could materially differ due to various factors, including economic conditions, competitive pressures, consumer preferences, and regulatory developments, among others.
This announcement is based on a press release statement and reflects the current financial strategy and shareholder value proposition as communicated by The Walt Disney Company.
In other recent news, Walt Disney has made significant strides, both in the box office and in the eyes of financial analysts. The company's latest release, "Moana 2," has set a new record for the highest 5-day opening in cinema history, amassing a remarkable $221 million domestically and $386 million worldwide. This success is part of Disney's ongoing winning streak, as the company has claimed the top three domestic openings of 2024.
On the financial front, Evercore ISI increased its price target on Disney shares from $128 to $134, keeping an Outperform rating. This decision was based on Disney's potential for earnings growth and recent positive guidance from the company's management. TD Cowen also adjusted its outlook on Disney, increasing the price target to $123 and maintaining a Hold rating. Similarly, Guggenheim maintained a Buy rating on Disney shares and increased the price target to $130, reflecting a robust earnings per share outlook.
Morgan Stanley (NYSE:MS) also adjusted its outlook on Disney, increasing the price target to $125 and maintaining an Overweight rating, citing a multi-year growth plan driven by a content turnaround and increased experiential investments. These adjustments follow Disney's announcement of high single-digit adjusted earnings per share growth in fiscal 2025, and double-digit growth in 2026 and 2027. These are the recent developments in Disney's performance and future outlook.
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