This week’s Stock of the Week is a giant that’s growing in many ways.
Mickey and More
The Walt Disney Company (DIS) is far more than the home of Mickey Mouse and other beloved characters. Cable networks including ESPN, broadcast properties including the ABC network and eight TV stations, parks and resorts, a cruise line and a highly successful motion-picture business that includes Pixar, Marvel, Lucasfilm and Touchstone are all part of its strongly content-oriented business.
The recent acquisition of 21st Century Fox further strengthens the Disney portfolio, and the company is now putting a lot of money and effort into sprucing up its theme parks worldwide—the first major improvements in years. The streaming video business is also picking up for Disney, which has ended its relationship with Netflix to launch a streaming service called Disney+ that will feature films and TV programs based on Star Wars, Marvel and other popular franchises.
Revenue was $59.4 billion in fiscal 2018 and will likely rise to $60.3 billion in fiscal 2019 and $62.9 billion in fiscal 2020. The dividend of $1.76/share/yr. recently yielded 1.7% and appears secure.
Fiscal year: September. Earnings per share: 2020 est./$7.44…2019 est./$7.10…2018/$7.08
Andrew A. Arons is managing partner, Synergy Advisory Management Group LLC, Hackensack, New Jersey, which manages $160 million. SynergyAMG.com