June 07, 2025 a 11:31 am
DIS: Dividend Analysis - The Walt Disney Company
The Walt Disney Company offers a moderate dividend yield of 0.88% with a complex dividend growth history. While the company has a notable 41-year dividend payment history, recent years show a decline in dividend growth. This presents both an opportunity for long-term investors looking for stability and a caution for those expecting rapid dividend increases.
📊 Overview
The Walt Disney Company operates within the Entertainment sector, providing a modest dividend yield of 0.88%. The current dividend per share stands at $0.75 with an impressive 41-year dividend payment history. Although there hasn't been a recent cut or suspension, investors should watch for any adjustments that might impact this stability.
| Metric | Detail |
|---|---|
| Sector | Entertainment |
| Dividend Yield | 0.88 % |
| Current Dividend per Share | 0.75 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The consistent dividend history is a pillar of Disney's long-term stability appeal. However, the recent years have seen fluctuations that might concern growth-focused investors. The steady historical payments suggest a commitment to delivering shareholder returns.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.50 |
| 2024 | 0.95 |
| 2023 | 0.30 |
| 2019 | 1.76 |
| 2018 | 1.72 |
📈 Dividend Growth
Dividend growth is a crucial indicator of a company's commitment to returning cash to shareholders. Despite a decline in recent years, with a 5-year growth rate of -11.60%, Disney shows resilience through its commitment to dividends.
| Time | Growth |
|---|---|
| 3 years | -18.58 % |
| 5 years | -11.60 % |
The average dividend growth is -11.60% over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
Understanding the payout ratio aids in assessing whether a company can sustain its dividend payments. A low payout ratio indicates more room for dividend growth, whereas a high ratio could signal potential cuts.
| Key figure | Ratio |
|---|---|
| EPS-based | 15.19 % |
| Free cash flow-based | 12.35 % |
The payout ratios are conservative with 15.19% (EPS) and 12.35% (FCF), suggesting a sustainable dividend policy underpinned by robust earnings.
✅ Cashflow & Capital Efficiency
A company's cash flow and capital efficiency measures its ability to generate cash and use it effectively to drive profitability and leverage growth, vital for sustaining ongoing dividend payments.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.88 % | 3.31 % | 0.62 % |
| Earnings Yield | 2.84 % | 1.59 % | 1.86 % |
| CAPEX to Operating Cash Flow | 39.73 % | 50.36 % | 82.25 % |
| Stock-based Compensation to Revenue | 1.49 % | 1.29 % | 1.18 % |
| Free Cash Flow / Operating Cash Flow Ratio | 61.26 % | 49.64 % | 17.75 % |
The free cash flow generation remains moderately stable across years, offering a reasonable cushion for dividends amid fluctuating earnings.
📏 Balance Sheet & Leverage Analysis
Analyzing the company's balance sheet and leverage aids in deciphering its financial stability and debt structure, impacting dividend security and growth potential.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 48.41 % | 50.26 % | 50.91 % |
| Debt-to-Assets | 24.84 % | 24.27 % | 23.75 % |
| Debt-to-Capital | 32.62 % | 33.45 % | 33.74 % |
| Net Debt to EBITDA | 3.05 | 3.08 | 3.06 |
| Current Ratio | 72.95 % | 105.22 % | 100.09 % |
| Quick Ratio | 67.11 % | 98.91 % | 94.09 % |
| Financial Leverage | 1.95 | 2.07 | 2.14 |
The leverage ratios indicate a healthy balance between debt and asset management, maintaining financial stability necessary for dividend reliability.
🛠️ Fundamental Strength & Profitability
Profitability ratios provide insight into the management's effectiveness at generating returns and managing costs relative to the firm's sales and overall equity, underpinning its potential for sustainable dividends.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 4.94 % | 2.37 % | 3.36 % |
| Return on Assets | 2.53 % | 1.15 % | 1.57 % |
| Margins: Net | 5.44 % | 2.65 % | 3.86 % |
| Margins: EBIT | 10.55 % | 7.58 % | 8.26 % |
| Margins: EBITDA | 15.33 % | 13.04 % | 14.50 % |
| Margins: Gross | 35.75 % | 33.41 % | 34.24 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
The company's profitability and efficiency remain competitively positioned, despite some margin pressure, supporting its dividend capability.
📉 Price Development
💡 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 2 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 29/40
🔍 Rating
The Walt Disney Company stands as a reliable choice for long-term, conservative investors seeking stable dividends with a focus on entertainment. However, given the recent challenges in dividend growth, potential investors must weigh stability against growth potential. The company earns a strong recommendation for its financial resilience and commitment to dividends.