rtmark
LearnBonds.com

How The Walt Disney Shares Behave After Dividend Growth Suspension?

The Walt Disney shares

The Walt Disney (NYSE: DIS) shares retreated slightly after the company announced a semiannual dividend that was in the line with the previous one. This means that Disney has suspended its dividend growth strategy after ten years of consecutive dividend increases. The company currently offers a semiannual dividend of $0.88 per share, yielding above 1%.

The dividend growth suspension is the outcome of its aggressive growth strategy. The company has been aggressively investing in growth opportunities to expand its revenue base and boost its profitability.

Disney dividend Chart

It had made several small and large acquisitions in the past few quarters. The Twenty-First Century Fox along with a stake in Hulu LLC are among the big acquisitions. The Walt Disney shares are currently trading around $150.

Lack of Dividend Growth Could Have Only Short Term Impact on Sentiments

The company is seeking to return a limited amount to investors through dividends and share buybacks. It is planning to use cash flows for investment purposes.

This strategy is working considering the robust growth in revenues. DIS has generated 17% year over year revenue growth in fiscal 2019; the revenue jumped almost 34% in the fourth quarter from the past year period.

Its strategy of enhancing Media Networks, Studio Entertainment and Direct-to-Consumer and International revenue helped in posting substantial revenue growth.

On the negative side, higher expenses related to the integration of acquisitions combined with investment in organic growth opportunities declined its earnings and free cash flows. It had generated only $400 million in free cash flows in the final quarter last year.

Investors Focus on Growth Strategies Supports The Walt Disney Shares Upside

Investors are currently concentrating on expansion strategies and Disney Plus. The company has experienced higher than expected growth from its streaming service. According to market reports, the entertainment company is adding 1 million subscribers per day from Disney+.

Robert A. Iger, Chairman, and Chief Executive Officer said, “We’ve spent the last few years completely transforming The Walt Disney Company to focus the resources and immense creativity across the entire company on delivering an extraordinary direct-to-consumer experience.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.