#7 - Walt Disney Company (NYSE:DIS)
The Walt Disney Company (NYSE:DIS) is the one company on this list that does not currently pay a dividend. Disney suspended its dividend as a countermeasure to weather the global pandemic. However, it’s likely that the company will restart their dividend when the company’s theme parks and production studios return to normal operating conditions. The company had a 40-year history of issuing a dividend with a payout ratio between 15% and 30%.
At the onset of the pandemic, Disney appeared to be a pandemic loser for obvious reasons. However, as time has gone on, the House of Mouse has proven that the whole of the company is greater than the sum of its parts. In this case, the company’s streaming service, Disney+, has helped it weather the lack of revenue from its theme parks, resorts, and cruise ships.
As the economy reopens, Disney looks to be one of the big winners. With that in mind, I would expect that investors can expect strong capital growth in 2021 and 2022. And for those investors with a medium to long-term retirement timeline, you should expect the company to reinstate its dividend.
About Walt Disney
The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners.
Read More - Current Price
- $115.65
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $123.83 (7.1% Upside)
The market is likely to remain volatile for quite some time. At this time, equities remain one of the only places to get a return on capital. But the risk tolerance of some workers may be changing.
A recent study found that many workers in their 50s are using the pandemic as an opportunity to take a step back from their career. The long-term effects of this are yet to be felt, but it’s likely that many individuals may be looking to accelerate their retirement plans.
This doesn’t mean individuals should look to exit stocks. But it may be time to become more selective, particularly for investors who believe a market correction may be coming. Quality, reliable dividend stocks are an ideal way to add diversification to a portfolio.
For investors that have some time, the opportunity to reinvest dividends for a higher total return now will be a source of stable cash in years to come.
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