Disney Reinstates Stockholders Dividends
According to The Hollywood Reporter, Disney will resume paying dividends to its stockholders following a three-year freeze instituted due to COVID. They will pay out $0.30 per share as of December 11, 2023, compared to the $0.88 they were giving out prior to COVID. The payments will begin in January. Check out a statement here:
“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,” said Mark Parker, chairman of the Disney board, in a statement. “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.”
The funds were initially diverted to fund more Disney+ content. Earlier this year, Disney CEO Bob Iger promised the dividends would return; reinstituting them is perceived as a sign of stability for Disney, which must have been an added incentive to bring them back.
