Disney Announces $0.30 Cash Dividend Per Share
The Walt Disney Company has undergone quite a few changes since the 2020 COVID-19 pandemic.
In 2022, there was a sudden change in CEOs with the ousting of Bob Chapek and the return of Bob Iger, followed by an eventful year under the tutelage of Iger. Now Disney is restoring cash dividends for shareholders for the first time in almost 4 years, and here’s what you need to know.
Cash Dividend
For the first time since May 2020, Disney will once again offer shareholders a cash dividend. While the price was $0.88 per share in 2020, they are now offering shareholders $0.30 per share.
This dividend is in respect of the second half of fiscal year 2023, and it will be payable on January 10, 2024 to shareholders of record at the close of business on December 11, 2023.
Mark Parker, Chairman of the Board, said, “This has been a year of important progress for The Walt Disney Company, defined by a strategic restructuring and a renewed focus on long-term growth.
“As Disney moves forward with its key strategic objectives, we are pleased to declare a dividend for our shareholders while we continue to invest in the company’s future and prioritize meaningful value creation.”
This news comes amidst activist investor Nelson Peltz’s latest bid for multiple seats on Disney’s board of directors, which was followed by a quick response by Disney, stating that the company is in fact “on track to achieve about $7.5 billion in cost savings — $2 billion more than our original target.”
Essentially, there are now 11 days for people to buy Disney stock in order to receive the cash dividend. Theoretically, this should help raise Disney’s stock price and please investors who have been considering giving Nelson Peltz a vote.
Earlier this year, Bob Iger stated that the company would have enough cash to restore its dividend. Now, he is fulfilling that promise.
Disney’s stock closed at $92.69 today, but at the time of writing, it was trading after-hours at a slightly higher cost. This means that Iger’s move to entice people to buy more Disney stock seems to already be working.
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