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Tuesday, January 5, 2016

Recent Transfer: The Walt Disney Company

The Walt Disney Company (NYSE:DIS), more commonly known as Disney, is a diversified international family entertainment company based in Burbank, California. Founded on October 16, 1923, by Walt Disney and Roy O. Disney, the company established itself as a leader in the American animation industry before diversifying into live-action film production, television, and theme parks. Today, Disney operates in five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.

DIS pays dividends semi-annually in the months of January and July. The company has a 6-year streak of dividend increases. At the current price of $105.07 the stock yields 1.35%.

DIS is the 15th stock that I'm transferring from my portfolio at Scottrade to DivGro.

Previously, I've transferred the following stocks:

Coca Cola (NYSE:KO)
Pfizer (NYSE:PFE)
Proctor & Gamble (NYSE:PG)
Texas Instruments (NASDAQ:TXN)
Kimberly-Clark (NYSE:KMB)
Union Pacific (NYSE:UNP)
Gilead Sciences (NASDAQ:GILD)
Dominion Resources (NYSE:D)
Reynolds American (NYSE:RAI)
W.P. Carey (NYSE:WPC)
Dr Pepper Snapple (NYSE:DPS)
    7.Toronto-Dominion Bank (NYSE:TD)   14.Ford Motor Company (NYSE:F)

In the process, I've added $1,333.56 to DivGro's projected annual dividend income and $1,798.50 in past dividends to DivGro's total dividend tally.

    2014-12-09 Bought: 50 shares of DIS at $92.88 per share:$4,643.97
2015-01-08 Dividend on 50 shares at $1.15¢ per share: $57.50
2015-07-29 Dividend on 50 shares at 66¢ per share: $33.00
    2015-11-16 Bought: 23 shares of DIS at $114.06 per share:$2,623.48
 Total Capital Invested $7,267.45

Total Dividends Received:$90.50

With this transfer, DivGro's projected annual dividend income increases by $103.66.

The following chart shows a 2-year history of Disney's share price and indicates when I bought shares. I'm happy with the performance so far – my investment is up about 7% (or 9% annualized).

Source: Scottrade

I already own 27 shares of DIS, which I bought on 27 January 2015, so this transfer brings the total number of DIS shares in DivGro to 100. At this stage, DIS is my largest holding in DivGro.

Why DIS?

Here are some reasons I like DIS and why I decided to transfer the shares to DivGro:
  1. DIS is a Dividend Challenger with a 6-year streak of dividend increases. In 2015, DIS switched to paying dividends semi-annually instead of annually.
  2. With a payout ratio of only 29% and low debt levels (39% debt/equity), DIS can easily continue to increase dividends for many years to come. 
  3. In November 2015, DIS announced full year earnings for fiscal 2015. The company completed a fifth consecutive year of record performance, delivering the highest revenue, net income and adjusted EPS in the company’s history.
  4. Morningstar gives DIS a 4-star rating and a fair value estimate of $134, implying an upside of 28% over the current share price. 
  5. Pixar, Marvel, LucasFilm. I work for one of these companies which is part of Disney.
Thanks for reading! Do you have any thoughts on DIS as a dividend growth stock? Please share your thoughts below.


  1. Disney is a great company! I own it through Loyal3. At one point I was up a little over 20% but that has dropped recently to about 9%. I've been adding on in these small drops so might consider doing that again.

    I only own a little under 10 shares so it remains a very small position for me and something that I hope to continue to slowly grow.

    That's awesome you work for one of those companies listed in #5. My brother trained at Vancouver Film School and learned 2D/3D animation from some of Disney and Pixar Canada. Sounded like he learned a lot and it was fun to visit him in Vancouver.

    1. Yes, Disney has dropped quite a bit from its high above $120, now trading around $100. It looks like an opportunity to buy more shares, though depending on what the markets do, a lower entry point is also possible.

      The big question for Disney, of course, is what happens with ESPN in the context of increasing licensing fees while customers are starting to abandon cable for content streaming.

      Vancouver is a great city. I had the opportunity to visit Pixar Canada while attending Siggraph in Vancouver a few years ago. Unfortunately, Pixar Canada is no more...


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