Walt Disney Co increases annual cash dividend by 34%

[crazy4wdw]

THE WALT DISNEY COMPANY INCREASES ANNUAL CASH DIVIDEND BY 34 PERCENT TO $1.15 PER SHARE

BURBANK, Calif., December 3, 2014 - The Walt Disney Company (NYSE: DIS) Board of Directors today declared an annual cash dividend of $1.15 per share, up 34 percent, or $0.29 per share, from the previous year. The dividend is payable on January 8, 2015 to shareholders of record at the close of business on December 15, 2014. This is Disney’s 59th consecutive dividend payment to shareholders.

“Disney delivered the highest results in its history in Fiscal 2014, reflecting the extraordinary quality of our creative content and the unparalleled strength of our brands,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “We achieved record revenue, net income and earnings per share for the fourth year in a row, and we are delighted to be able to increase our shareholder dividend by 34 percent while continuing to invest for future growth.”

The Company also announced that it has scheduled its annual shareholders' meeting for Thursday, March 12, 2015, in San Francisco.

 

[Paging Tom Morrow]

THE WALT DISNEY COMPANY INCREASES ANNUAL CASH DIVIDEND BY 34 PERCENT TO $1.15 PER SHARE

BURBANK, Calif., December 3, 2014 - The Walt Disney Company (NYSE: DIS) Board of Directors today declared an annual cash dividend of $1.15 per share, up 34 percent, or $0.29 per share, from the previous year. The dividend is payable on January 8, 2015 to shareholders of record at the close of business on December 15, 2014. This is Disney’s 59th consecutive dividend payment to shareholders.

“Disney delivered the highest results in its history in Fiscal 2014, reflecting the extraordinary quality of our creative content and the unparalleled strength of our brands,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “We achieved record revenue, net income and earnings per share for the fourth year in a row, and we are delighted to be able to increase our shareholder dividend by 34 percent while continuing to invest for future growth.”

The Company also announced that it has scheduled its annual shareholders' meeting for Thursday, March 12, 2015, in San Francisco.

Can't wait for my daughter to get her 58 cent check in the mail! The beauty of owning one share.

 

[agavegirl1]

It is amazing what a large stock buyback will do for the price of stock, dividends per share and executive compensation packages. Did you notice Meg Crawford will be retiring in 2015 now that her stock and options are at an all time high?

 

[manning]

Dividend yield is only 1.2%. I've got stocks with yields ranging from 3.5 to 5.5 %. Well established stocks.

 

[MrInfinity]

Dividend yield is only 1.2%. I've got stocks with yields ranging from 3.5 to 5.5 %. Well established stocks.

Disney stock has also tripled in value in the last 5 years so there is more to a stock than a dividend. Even a 5.5% dividend will only make you 30% over 5 years, vs the 200% Disney would have made, 7x as much. I love that the dividend went up, but I hold Disney for the appreciation. I think it'll break $100 by summer. Major movies coming out this summer (Inside Out, Marvel) plus Star Wars in Dec and Incredibles 2, Nemo 2, and Frozen 2 on the horizon to keep the buzz going.

 

[lockedoutlogic]

Disney stock has also tripled in value in the last 5 years so there is more to a stock than a dividend. Even a 5.5% dividend will only make you 30% over 5 years, vs the 200% Disney would have made, 7x as much. I love that the dividend went up, but I hold Disney for the appreciation. I think it'll break $100 by summer. Major movies coming out this summer (Inside Out, Marvel) plus Star Wars in Dec and Incredibles 2, Nemo 2, and Frozen 2 on the horizon to keep the buzz going.

The value in Disney stock is the split potential...

Over the long haul, there's no value in buying Disney stock at $70, $80, $90

 

[manning]

Disney stock has also tripled in value in the last 5 years so there is more to a stock than a dividend. Even a 5.5% dividend will only make you 30% over 5 years, vs the 200% Disney would have made, 7x as much. I love that the dividend went up, but I hold Disney for the appreciation. I think it'll break $100 by summer. Major movies coming out this summer (Inside Out, Marvel) plus Star Wars in Dec and Incredibles 2, Nemo 2, and Frozen 2 on the horizon to keep the buzz going.

Hmm, I guess I'm doing ok considering I'm living comfortable in retirement on dividends alone.

 

[DrBanner]

I wonder what the magic number is for a stock split? I have some money set aside just for that occasion..

 

[OKW Lover]

I wonder what the magic number is for a stock split? I have some money set aside just for that occasion..

A stock split does nothing for the investor. If they were to do a 2 for 1 split the investor is indifferent to a $100 pre-split price or a $50 post-split price.

 

[manning]

You have one share of stock priced at $100 per share, total of $100.

It splits 2 for 1.

You now have two shares of stock at 50 dollars a share Total of $100.

Remember that stock splits have no effect on the worth (as measured by market capitalization) of the company. A stock split should not be the deciding factor that entices you into buying a stock. While there are some psychological reasons why companies will split their stock, it doesn't change any of the business fundamentals. In the end, whether you have two $50 bills or one $100 bill, you have the same amount in the bank.

Also the dividend splits. A 50 cent dividend per share now becomes 25 cents per share.

 

[Cheshire Figment]

Since I started owning Disney stock there have been two splits.

First was a 4 for 1 (3 additional shares) on May 15, 1992. At the time the stock was somewhere in the $170 range.

The other time was a 3 for 1 (two additional shares) on July 9, 1998. At the time the stock was somewhere in the $115 range.

 

[lockedoutlogic]

A stock split does nothing for the investor. If they were to do a 2 for 1 split the investor is indifferent to a $100 pre-split price or a $50 post-split price.

Yeah...except that you know that Disney stock has a consistent history of escalating with all strong economies...

Even if a bubble burst and it sinks back Into the 20s or 30s...it will rise back Into that 70+ range in short order.

There are no certainties...
But this is as close as you're gonna get.

A split for Disney is money for nothing...almost literally.

 

[OKW Lover]

Yeah...except that you know that Disney stock has a consistent history of escalating with all strong economies...

Even if a bubble burst and it sinks back Into the 20s or 30s...it will rise back Into that 70+ range in short order.

There are no certainties...
But this is as close as you're gonna get.

A split for Disney is money for nothing...almost literally.

True, but even without a stock split the stock would continue to escalate with strong economies.

 

[PACVII]

I am thinking the pice will need to get a lot higher closer to 200 before they consider a split. Has to do more with the value of today's dollar and simple economics then just crossing over a certain range. You have to remember that when they do spilt it will also double the number of available shares and if not done with the right exposure this will push pice down as the unsold shares flood the market. They have been making headway with buy back but companies will do this to increase value and level out price flex to try and protect value. So given market conditions any hope of a spilt is way off and as prior folks have stated once split it does not double your money but just cuts the price by the percentage of the spilt. Gives you a perception of over night wealth and keep the pice available for the common folks. Just look at BRK class A stock to see what happens when stock is not split. However for most companies they like to have stock trading at a price they feel the market can support and people feel has value.

 

[searlproudbottom]

Stock splits have been good to us.

Originally Posted by OKW Lover View Post

A stock split does nothing for the investor. If they were to do a 2 for 1 split the investor is indifferent to a $100 pre-split price or a $50 post-split price.

For a Christmas Present in 1966 I received from my Grandfather 3 shares of Disney Stock. In or around 1974 I purchased one more share. After many Stock splits my four shares are now I now 1,152 Shares.

In 1994 my mother purchased 31 shares of Disney Stock for my oldest Daughter which is now 62 shares.

Searl

 

[lockedoutlogic]

Stock splits are done when the Investors/board are fairly certain that the shares will escalate...at least in modern times. I'm sure it used to be a mechanism to raise capital...like dividends - which have gone off the rails and should be eliminated.

So to say that a split doesn't give any money to the shareholders is... While technically correct...a tad misleading.

It's not like sears or jcpenny are about to split.

 

[OKW Lover]

Stock splits are done when the Investors/board are fairly certain that the shares will escalate...at least in modern times. I'm sure it used to be a mechanism to raise capital...like dividends - which have gone off the rails and should be eliminated.

So to say that a split doesn't give any money to the shareholders is... While technically correct...a tad misleading.

It's not like sears or jcpenny are about to split.

Not at all misleading. Of course I come from business background so I may understand this better than some others on the boards. If prices are rising or not is immaterial. Yes, that might one of the factors that go into deciding to split the stock, but its not a governing factor. Current shareholders are not in the least bit affected by a stock split.

The more serious factor about a stock split decision is how high is the stock price. A company may decide to split stock if it seeks to encourage holdings by smaller shareholders, for example a public utility company. Its easier for a small investor to scrape up the money to buy 100 shares at $50 than 100 shares at $100. Some companies care about that, some don't. An extreme example of that is Berkshire Hathaway A shares currently trading around $218,000 per share.

 

[lockedoutlogic]

So what you're saying is...

A split encourages stock sales to a wider range of potential investors... Not to mention those lucrative funds like the California teachers pension fund...which thereby increases the broad demand of the stock in the market and leads to higher prices as a function of the curve...

Or something like that...

And isn't Berkshire Hathaway jimmy buffets production company?

I love him..."Boat Drinks" is my favorite

 

[DanInMN]

And isn't Berkshire Hathaway jimmy buffets production company? I love him..."Boat Drinks" is my favorite

Very funny!

More seriously - as described by earlier posts, a stock split has no impact on the value of the company. It may be interesting to a casual investor though.

If splits drove stock prices, then even poor performing companies would be splitting to raise their market value!

In theory, a stock price is the present value of future anticipated per share dividends. In reality, I suspect the value is assigned by a mix of rumors, facts, heard mentality, all mixed with gambling!

Unfortunately I know a little about this, having been VP of Technology for a large firm for too many years. Fortunately I have moved on to more personally rewarding pursuits!

 

[lockedoutlogic]

I like how everything is being relayed in nuts and bolts "technical" terminology...

The stock market...is entirely perception...and all of you know it. It is no longer "company made money...stock goes up" - as it should be. It is far more gambling and String pulling by those with power lurking in the shadows.

If Disney stock were to split - barring some type of catastrophe...both those holding the stock and those that would buy in at the "reduced" value would make a fortune over the long haul. And everybody knows it.

You guys are starting to make me regret that I DIDNT sleep through my Econ classes.

Merry Xmas.