Walt Disney Ups Dividend
Last night Disney (DIS) announced a $.05 increase in it's dividend to $.40 a year. While not a huge increase or a huge dividend in total, it nevertheless underscores the advantage of investing in financially strong companies. DIS now has a Net Payout Yield of nearly 6.25%. The company really upped their stock repurchases in Q2 and then again in a major way during Q3. The company bought back $2.7B shares during the Q when the stock traded in the lower $30s. With the stock today over $37 those purchases are looking very good. Using the $3.7B in buyouts over the last 6 months on a annual basis the yield jumps to a much more impressive amount of over 11%. Upping the dividend was a good deal, but it would've been nice to increases it to something much higher if they have the money for such huge buybacks, With the dividend only slightly above 1% after this raise, dividend investors won't be sucked into this stock. Ideally we'd see a much more balanced approach to their ca...