You're Missing the Point About Disney Bringing Back Its Dividend
Cash distributions are back at Walt Disney (NYSE: DIS). The media giant announced the return of its payouts on Thursday afternoon, declaring a semi-annual dividend of $0.30 a share for the second half of its fiscal year that ended in September. The distribution will be paid on Jan. 10 of next year to shareholders of record as of Dec. 11.
The return of the dividend isn't really news. Disney announced back in February that it wanted to resume its cash distributions before the end of this calendar year. It reiterated that desire in two of its subsequent earnings calls.
Disney now paying $0.30 a share every six months doesn't amount to much for a stock that's approaching $100. It translates to a yield just above 0.6%, a pittance in this era of high interest rates available on short-term fixed-income vehicles. This is still an important event that is bigger than just the small payout.
Source Fool.com
