Is Disney a Great Dividend Stock?

Studies have shown that dividend stocks have historically outperformed non-dividend paying stocks. Companies that pay regular dividends are usually very profitable, which points to a strong underlying business with a competitive advantage working in its favor.

Walt Disney (NYSE: DIS) has paid a dividend every year going back to the 1950s. The company grew from a small cartoon studio to a global entertainment empire with $78 billion in trailing-12-month revenue.

However, Disney's long streak of paying a dividend is currently threatened by the recent closures of movie theaters and theme parks, which comprised about half of the company's annual revenue in fiscal 2019. To shore up cash on the company's balance sheet, management announced in early May it would forgo the next semi-annual dividend payment.

Source Fool.com