For a while I have been keeping an eye on The Walt Disney Company with a ticker symbol $DIS, I have been a fan of Disney for a long time and I am considering starting a position and growing it throughout the years, I have always been a fan of media companies and I own shares of Netflix, Amazon (since they own Hulu) and also distribution channels like Comcast, not only do they have excellent branding power but they also have several assets that have caught my attention, today I am going to analyze this company and I will tell you the reason why I will buy or not buy.
As always, the information shared via this channel is for entertainment purposes only, always buy stocks based on your own opinions and research, use this information as simply information and facts but always remember that buying and selling stocks comes with risk, never buy stocks based on someone else’s opinion.
Ok, now that we have that out of the way, lets take a look at this amazing company and we will figure out together why would it be a good idea to invest in them or not, the stock market can be a very complex machine and simply having a profitable business does not always mean that your share prices will go up or down, a company can report great earnings and stock prices could go down, some companies lose millions of dollars every quarter and share prices go up, the value of a stock is truly based on what the public things the shares are worth, this is the reason why I take my time to research and study each company before buying any shares.
So let’s talk about one of the reasons why I have decided to consider buying shares of $DIS, as I mentioned before, I have traded Netflix and Amazon not only because they are great companies, but because both of these companies do not pay a dividend, I am a big fan of dividend investing and when a company does not pay a dividend I prefer to to buy them and sell them as I hit a certain percent of profit, the reason for this is because if a stock does not pay a dividend I need to get profits from it and trading them allows me to do so, now in the case of a company like Disney, they actually do pay a dividend, as of now they are paying a dividend of 1.5% which is great for a growth company. For me, it is critical to receive a dividend payment since I plan on holding the company for a long time or even a lifetime. The fact that they are a dividend growth company is a major plus for me.
Here are some facts of the Walt Disney Company stock
Today is February 19th and it is 7:45 pm Eastern time, share prices right now are going for $113 dollars, they have a market cap of $169 billion dollars and they have a P/E Ratio of 15, in my opinion their Price to Earnings Ratio is relatively low for a growth company. Also, they reported a revenue of $15 billion dollars on the last quarter and their profit margin is almost 20% which is great, Disney is an extremely profitable company with the opportunity of even more in the future.
Below is Disney Stock Price Chart (Past 5 years)
Let’s take a look at their 5 year price chart, as you can see their stock prices have gone up the last 5 years, in a way this would be a con since you are basically paying top dollar for their shares, of course no one wants to ever pay the most expensive price and if you ran in to the opportunity of getting shares at a lower price then that would be great, however in some cases it is not really a bad thing to pay a fair price for a good company like Warren Buffett would say, truth of the matter is that this is a growth stock and we are going to show below where the opportunity for bigger profits comes into play.
What Assets Does Disney Have?
As you noticed, the price chart is showing that Disney is currently trading at a relatively high valuation, we mentioned before how many other factors can move prices higher or lower and here I will list their assets that in my opinion will move the share prices higher. Not only does Disney has a very recognizable brand that is noticeable all around the world, but they also own assets like The Disney Studio, Disney Media Networks (ABC, ESPN), Marvel Entertainment, Disney Resorts and many, many more. This is an extremely diversified company with many, many sources of revenue making them one of the most profitable companies in the world.
Is Disney a Good Investment?
Here is the bottom line, I mentioned before how I invest for Dividends and growth and as much as I love trading some speculation stocks I also like investing in companies that have maintained profits through out the years, I love companies like this where they do not only have a small line of products but they also are invested in other companies and have other sources of revenue, this company is huge and has tons of assets and I do not see them going anywhere in the next 5 to 10 years, plus while I wait for share prices to go up I will collect their dividend payments, there are no guarantees in the stock market but when you look at a company and all of their facts it can guide you into making the right decision.
What is their next dividend date?
The next ex-dividend date will be on July 5th 2019 and they will be paying $.88 cents per share on July 25th. As you can see, they have been paying dividend for many, many years. On top of that, their dividend amounts have been steadily increasing as well no matter what the share prices are, this is a great opportunity for dividend growth investors to invest in a company that will have a really good chance of increasing their revenue and profits, not only do they keep investing their profits into great other amazing assets but they also are trying to innovate, they have been talking about starting their own streaming service and using the media companies that they own to distribute their content, this will be competing directly with Netflix and Comcast and will likely be a very profitable venture.
How can I buy shares of Disney?
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