The Walt Disney Company is planning to increase its stock dividend. The company announced during its Q1 FY24 Earnings Report that the dividend would be increased to $0.45 per share, an increase of 50% over the most recent dividend payment.
Via the Earnings Report:
The Board also declared on February 7, 2024 a cash dividend of $0.45 per share – an increase of 50% versus the last dividend paid in January – payable July 25, 2024 to shareholders of record at the close of business on July 8, 2024.
In addition to the stock dividend increase, Disney is also planning a $3 billion stock repurchase program in fiscal 2024.
Disney paused its dividend payments under then-CEO Bob Chapek during the COVID-19 pandemic. The payments resumed in December 2023 with a much smaller initial payment to shareholders. Disney paid $0.30 per share when the dividend returned, which was significantly smaller than the $0.88 per share that was paid in 2019.
Disney’s boosted dividend and planned stock buyback program appear to be aimed at shareholders who are displeased with the company’s stock performance. The stock hit its peak price of over $200 per share back in March 2021, but has since slid down to the $80s in Fall 2023 before coming back to hover around $100.
