Disney (DIS +5.4%) rises slightly AH after announcing an annual dividend of $0.60/share, up 50%...

Disney (DIS +5.4%) rises slightly AH after announcing an annual dividend of $0.60/share, up 50% from last year's $0.40/share. The dividend translates into an annual yield of 1.6%. Tim McAleenan argued in September that Disney needs to rethink its dividend policy - both in terms of increasing its yield, and shifting to a quarterly payout.

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Comments (7)
  • IncomeYield
    , contributor
    Comments (3760) | Send Message
    I predicted this ploy earlier. You will see more initiations and more increases since companies see a massive, panic "stretch for yield".
    This will help support their share prices to an extent since many income investors don't care if the share price jumps around or even declines by a large %.


    Note that some companies have divs that pay more than their bonds!


    We all know how this chapter of the story can end.
    30 Nov 2011, 10:47 PM Reply Like
  • Dr. V
    , contributor
    Comments (1168) | Send Message
    If $0.60 is a 50% increase from $0.40, I must have been sick that day, or it's time for the author to change his bong water.
    1 Dec 2011, 05:03 AM Reply Like
  • gjg49
    , contributor
    Comments (529) | Send Message
    a $0.60 looks like a 50% increase from $0.40 to me, so i guess i better change MY bong water.
    (dr v: what am i missing here: (0.6/0.4)-1=0.50, or 50%) ?? )
    1 Dec 2011, 07:07 AM Reply Like
  • Dr. V
    , contributor
    Comments (1168) | Send Message
    It was meant as a joke, and the dividend is indeed exactly 50%, you are right and your bong water is ok.


    There was a similar comment recently about a 10% increase and I thought it was funny, so i tried to apply the same joke parameters, I see it did not work.


    My bad.
    1 Dec 2011, 08:52 AM Reply Like
  • positivethoughts
    , contributor
    Comments (2065) | Send Message
    I guess Disney has nothing else worthwhile to invest in to grow their business.
    1 Dec 2011, 09:19 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2086) | Send Message
    Yep you are exactly right. When a company raises a dividend it means they are out of ideas for future growth. Just look at the disastrous shape that KO, JNJ, PG and other dividend raisers have been in for the past 30 years.
    1 Dec 2011, 10:03 AM Reply Like
  • losbronces
    , contributor
    Comments (1031) | Send Message
    Better to admit that and move on instead of making foolish purchases (ones that use up cash but add no value) in an attempt to collect bonuses for management as we've seen at a number of corporations.
    1 Dec 2011, 02:52 PM Reply Like
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