June 27, 2025 a 11:31 am
DIS: Dividend Analysis - The Walt Disney Company
The Walt Disney Company offers an interesting profile for dividend investors. With its long-standing history of payouts, the company exhibits resilience and commitment to its shareholders. However, recent trends in dividend growth raise concerns that need to be evaluated against the backdrop of Disney's financial strategies and market dynamics.
📊 Overview
Here's a quick overview of The Walt Disney Company's current dividend profile and history:
| Metric | Details |
|---|---|
| Sector | Media & Entertainment |
| Dividend Yield | 0.84 % |
| Current Dividend Per Share | 0.75 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The uninterrupted dividend history of The Walt Disney Company, spanning over four decades, stands testament to its enduring commitment to rewarding shareholders. However, the recent fluctuations necessitate a closer inspection of their impact on investor sentiment and future expectations.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.5 |
| 2024 | 0.95 |
| 2023 | 0.3 |
| 2019 | 1.76 |
| 2018 | 1.72 |
📈 Dividend Growth
It's crucial to understand the pace at which dividends have grown historically to forecast future trends. Despite some stagnation in recent years, Disney's long-term growth strategy might reflect in its dividend policies moving forward.
| 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
The payout ratio is a critical metric in assessing dividend sustainability. A lower payout ratio typically indicates more room for future growth and resilience against earnings declines.
| Key Figure | Ratio |
|---|---|
| EPS-based | 15.19 % |
| Free Cash Flow-based | 12.35 % |
With a notably low EPS-based payout ratio of 15.19 % and an FCF payout ratio of 12.35 %, Disney portrays a conservative stance, leaving ample room for growth and stability.
✅ Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency helps determine a company's capacity to sustain operations and fund dividends from generated earnings.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 0.0499 | 0.0488 | 0.0062 |
| Earnings Yield | 0.0405 | 0.0284 | 0.0159 |
| CAPEX to Operating Cash Flow | 0.3973 | 0.3874 | 0.5036 |
| Stock-based Compensation to Revenue | 0.01423 | 0.01495 | 0.01286 |
| Free Cash Flow / Operating Cash Flow Ratio | 0.6126 | 0.6126 | 0.1775 |
The Free Cash Flow Yield and capital allocation strategies reflect stability and efficiency, crucial for maintaining a strong dividend policy.
⚠️ Balance Sheet & Leverage Analysis
A resilient balance sheet and prudent leverage are indicators of a company's financial health and its ability to weather economic volatility.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.4841 | 0.5026 | 0.5091 |
| Debt-to-Assets | 0.2484 | 0.2427 | 0.2375 |
| Debt-to-Capital | 0.3262 | 0.3345 | 0.3374 |
| Net Debt to EBITDA | 3.0516 | 3.0798 | 3.0636 |
| Current Ratio | 0.6681 | 1.0522 | 1.0009 |
| Quick Ratio | 0.6711 | 0.9891 | 0.9409 |
| Financial Leverage | 1.9486 | 2.0708 | 2.1433 |
The managed leverage and stable ratios indicate a sound financial footing, emphasizing Disney's ability to manage its obligations efficiently.
🗣️ Fundamental Strength & Profitability
Assessing these metrics provides insights into the company's core profitability and operational efficiency, which are critical for sustaining dividend payouts.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 4.94% | 2.37% | 3.36% |
| Return on Assets | 2.53% | 1.15% | 1.57% |
| Marginal Net | 5.44% | 2.65% | 3.86% |
| EBIT Margin | 10.55% | 7.58% | 8.26% |
| EBITDA Margin | 15.33% | 13.04% | 14.50% |
| Gross Margin | 35.75% | 33.41% | 34.24% |
| Research & Development to Revenue | 0% | 0% | 0% |
Despite challenges, Disney's consistent profitability metrics reflect its robust value-generation capacity, pivotal for sustaining dividends.
📉 Price Development
📊 Dividend Scoring System
| Criteria | Score | Bar Indicator |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 4 | |
| Dividend Growth | 2 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 31/40
✅ Rating
The Walt Disney Company currently presents a balanced dividend opportunity with some challenges. While its payout strategy is robust, moderated growth in dividends is notable. Investors might consider Disney as part of a diversified portfolio, especially if they value long-term stability over aggressive growth in dividends.