Disney's Dividend Is Coming Back. Should You Buy Now?
After suspending its dividend at the start of the COVID-19 pandemic, Walt Disney's (NYSE: DIS) management recently said it thinks it'll be ready to start returning cash to shareholders again in the near future.
CEO Bob Iger said during Disney's first-quarter earnings call that he intends to ask the board to reinstate the dividend by the end of the year. The move will coincide with various cost-cutting measures implemented this year, and a push toward profitability in the streaming business. And while management said the dividend will be modest to start, it expects it to increase over time as its earnings improve.
Firm plans to reinstate the dividend, even if a modest payout, is a sign of confidence from management. And it may signal to investors interested in the company that now's a good time to buy shares.
Source Fool.com
