Dow Dividend Checkup: Disney

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves discusses topics across the investing world.

Disney has been very strong of late. It's up an impressive 18% in 2012, making it one of the top performers in the Dow as a whole. And late last year, it actually increased its dividend by 50%, which was the biggest increase in 20 years. Disney's dividend yield is relatively low, however. It's just 1.40% or so, compared to the Dow's average of 3.10%. Competitor News Corp. pays under 1%, while Time Warner pays around 3%. Ultimately, most investors probably like to see a higher yield from Disney. And that recent 50% increase may signal a new focus on returning value to shareholders. John likes this company and owns it in his personal portfolio. Obviously, the theme parks are doing well, but there is significant growth in ESPN too, which accounts for a very significant part of the company's revenues. With an increasing dividend, this one gets even more attractive.

Disney's yield is relatively low compared to that of some other leading stalwarts. If you'd like to learn more about some outstanding dividend payers, The Motley Fool has compiled a special free report outlining our top nine dependable, dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

John Reeves owns shares of Walt Disney. The Motley Fool owns shares of Walt Disney. Motley Fool newsletter services recommend Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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