Shareholders of Disney (DIS), while probably not surprised, will be happy to learn that the company has increased its dividend again by 0.4 percent, something they've done over the last several years. The increase was equal to 12.9 percent, or 35 cents a share after the increase.
"The 12.9 percent increase in its cash dividend is a positive for Disney shareholders and in keeping with the pattern of increasing the company's cash payout by $0.04 annually the last few years," said BMO Capital Markets analyst Jeffrey Logsdon.
What is better news is the company wouldn't have done this if they didn't have a strong surety that their performance would remain strong as they go ahead. So to them, their immediate future looks good, and I think they're right.
One thing that could cause some short-term problems will be the writers strike, which could interfere with some of their TV advertising revenue if it keeps on for some time. The television network was the main driver behind last quarters' success.
If that is upset through a long strike and lowering ad revenue, that could cause next quarter to suffer and the whole year to potentially slow down. It depends on how long the strike lasts and what the network has in reserve. Either way it will slow down its advertising revenues.
Comment Preview