Disney boosts dividend 33% after achieving streaming profit

WALT Disney raised its annual dividend by 33 per cent to US$1 a share, another sign that a turnaround plan put in place two years ago is paying off.

The money will be distributed to shareholders in two 50 US cent instalments in January and July of next year.

“With the company operating from a renewed position of strength, we are pleased to increase the dividend for shareholders while continuing to invest for the future,” chief executive officer Bob Iger said on Wednesday (Dec 4).

In fiscal 2024, Disney paid a dividend of 75 US cents per share. The new payout comes after Disney forecast earnings growth for the next three years in November and posted its second consecutive profit from its streaming TV business.

Disney suspended its dividend in 2020 when the pandemic shut down its theme parks and live sports business. Activist investor Nelson Peltz made restoring the dividend a part of his unsuccessful efforts to get a board seat. Iger made it priority as well and the company started paying a dividend again last year. BLOOMBERG