Annual Dues Linked to Stock Performance?

[CarpeDisney]

Would anybody know what degree of correlation exists between the calculation of annual dues charged to DVC members and the performance of Disney stock?

I just read on MSN that Disney reported a 32% drop in its fiscal first-quarter profit, as compared to last year. While I know there are many other Disney ventures than just DVC and the parks, does this mean we should expect an unusually high increase in upcoming dues? Let's hear from all of our financial analysts (and all those, like me, who pretend to know what we're talking about)

 

[chalee94]

Would anybody know what degree of correlation exists between the calculation of annual dues charged to DVC members and the performance of Disney stock?

I just read on MSN that Disney reported a 32% drop in its fiscal first-quarter profit, as compared to last year. While I know there are many other Disney ventures than just DVC and the parks, does this mean we should expect an unusually high increase in upcoming dues?

upcoming dues for 2009 have already been announced and i'm not sure that dues for 2010 are going to do anything to help disney's earnings in the next few quarters...

also, i'm pretty sure that while disney makes a profit on managing the resorts which is included in the dues, that profit is limited to a percentage of actual expenses.

so i'm betting the correlation coefficient is pretty close to zero on this one...

 

[Lynne M]

No correlation, I'd think. Dues are for taxes and operating expenses. Disney can't raise them just to raise profits.

Take a look at your dues statement. You'll see what expenses go into the dues.

 

[CarolA]

Only relationship I could possibly see is that I assume our "reserve" is invested in SOMETHING and considering today's market.... that could require them to increase just to keep the value of the reserve where they need it. However, generally the laws require them to be fairly conservative with the reserve so I don't forsee a big issue.

 

[Chuck S]

I would also assume that the reserve fund, by law, has to be in an insured account, not tied to a volatile asset like a stock. As interest rates have plummeted (again) they may need to increase our reserve fund contributions to make up that difference, until interest rates rise.

 

[JimC]

Dues are based on labor costs (including rates, productivity, benefits and payroll taxes), maintenance expenditures and operating costs. Property taxes are affected by the whims of government needs, state/local property tax laws and property assessments. Reserves are affected by replacement costs, the accuracy of projected useful lives of the capital assets and interest earned on invested funds.

 

[dvc at last !]

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