October 05, 2025 a 11:32 am
DIS: Dividend Analysis - The Walt Disney Company
The Walt Disney Company stands out in the entertainment sector with a rich history of 41 years of dividend payments. While recent dividend growth has been negative, the company still holds a significant position in the market with over $202 billion in market capitalization. Investors may need to weigh the historic continuity of dividends against current financial challenges when considering Disney for dividend income.
Overview 📊
With its roots deeply embedded in the entertainment sector, Disney has maintained a minimal but consistent dividend yield of 0.84%. Despite recent challenges, the company has shown resilience in maintaining investor payouts over several decades.
| Aspect | Details |
|---|---|
| Sector | Entertainment |
| Dividend yield | 0.84 % |
| Current dividend per share | 0.75 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
Dividend History 🗣️
The significance of dividend history cannot be overstated, as it provides a tangible proof of a company's commitment to returning value to shareholders. Disney's ability to maintain dividends for more than four decades showcases its dedication to this cause.
| 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 critical measure of a company's potential to increase shareholder value over time. Despite recent declines in growth, Disney’s historical ability to enhance its payouts reflects the company's previous financial strength and market positioning.
| Time | Growth |
|---|---|
| 3 years | -18.58 % |
| 5 years | -11.60 % |
The average dividend growth is -11.60% over 5 years. This indicates challenges in maintaining dividend increases but suggests a possible recalibration of strategic priorities to stabilize growth.
Payout Ratio ✅
Evaluating payout ratios is crucial in assessing the sustainability of a company’s dividend policy. With Disney's EPS-based payout ratio at 11.66% and FCF-based ratio at 11.65%, it indicates a conservative approach with ample capacity to cover dividend obligations from both earnings and cash flow perspectives.
| Key figure | Ratio |
|---|---|
| EPS-based | 11.66 % |
| Free cash flow-based | 11.65 % |
These low payout ratios suggest Disney has wisely managed its dividend obligations, leaving room for growth or operational reinvestment.
Cashflow & Capital Efficiency ⚠️
Cash flow indicators offer insights into a company’s operational efficiency and its ability to meet its financial commitments. For Disney, strong cash flow figures alongside strategic capital expenditures reflect disciplined financial management and investment into growth areas.
| Fiscal Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.88% | 3.31% | 0.62% |
| Earnings Yield | 2.84% | 1.59% | 1.83% |
| CAPEX to Operating Cash Flow | 39.68% | 50.36% | 82.25% |
| Stock-based Compensation to Revenue | 1.50% | 1.29% | 1.18% |
| Free Cash Flow / Operating Cash Flow Ratio | 61.26% | 49.64% | 17.75% |
| Return on Invested Capital | 5.37% | 3.56% | 2.55% |
Disney’s capital efficiency, highlighted by its CAPEX strategy and free cash flow conversion, underscores an effective balance between expansion and profitability, critical for future dividend reliability.
Balance Sheet & Leverage Analysis 📉
A robust balance sheet underpins a company’s ability to handle economic fluctuations. Disney's leverage ratios remain within manageable limits, which bodes well for continuous financial stability and dividend reliability.
| Fiscal Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 49.17% | 51.04% | 55.00% |
| Debt-to-Assets | 25.24% | 24.65% | 25.66% |
| Debt-to-Capital | 32.96% | 33.79% | 35.49% |
| Net Debt to EBITDA | 2.97 | 3.01 | 3.39 |
| Current Ratio | 0.67 | 1.05 | 1.00 |
| Quick Ratio | 0.67 | 0.99 | 0.94 |
| Financial Leverage | 1.95 | 2.07 | 2.14 |
Despite an increase in leverage, Disney's ability to cover its obligations suggests potential for maintaining stable dividend payments, assuring investors of ongoing fiscal responsibility.
Fundamental Strength & Profitability 📉
Profitability metrics provide an overview of a company’s operational success. Disney’s returns and margins reflect its ongoing efforts to enhance efficiency while sustaining profitability.
| Fiscal Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 4.94% | 2.37% | 3.31% |
| Return on Assets | 2.53% | 1.15% | 1.54% |
| Net Margin | 5.44% | 2.65% | 3.80% |
| EBIT Margin | 10.55% | 7.58% | 8.26% |
| EBITDA Margin | 16.01% | 13.62% | 14.50% |
| Gross Margin | 35.75% | 33.41% | 34.24% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
Disney's profitability performance reveals positive traction, with profitability ratios demonstrating efforts towards financial fortification. However, strategic innovation remains key, as R&D investment is currently minimal.
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 | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 29/40
Rating ⭐
Disney remains a resilient player with a commitment to shareholder returns, although recent headwinds have impacted its dividend momentum. With sound financial management, Disney continues to offer potential but investors should remain cautious and monitor future developments.