Disney is famous for extracting top dollar from its fans' pockets. But now, the S&P 500 company is looking to give money to its shareholders — although it's being a bit Scrooge-like about it.
Disney says it plans to pay a cash dividend of 30 cents a share to investors who own the entertainment giant's stock as of the market's close on Dec. 11. It marks the first time the company has paid a dividend since 2020.
But it's hardly a princely sum.
Disney's Dividend Far From A Matterhorn-Size Payment
Even if you buy Disney's stock ahead of the upcoming dividend, don't go shopping for castles just yet. Based on the single dividend, that means Disney stock yields just 0.3%. That's a Mickey Mouse dividend by S&P 500 standards.
Disney's dividend ranks just as the second-to-last lowest in all of the S&P 500 (among stocks that pay a dividend). It's only barely higher than the 0.2% paid by they lowest dividend payer: Cooper. And it's a small token for Disney investors up just 6.4% this year on the stock, when the S&P 500 is up 20%.
But get this. The Mouse House's dividend is tiny even by Disney standards. The company was paying much more than that — $1.76 a share — in 2019 (88 cents a share twice a year). The company suspended its dividend following the January 2020 payment due to the pandemic. It's paid nothing since then.
Disney hasn't said if the new dividend is a one-time payment or an ongoing resumption. Calls and emails were not returned.
Investors, though, want their due. Activist investor Trian Fund Management now owns 32.9 million shares, controlling 1.8% of the company. One of its requests is a dividend. Disney technically obliged.
Where S&P 500 Dividends Are Much Larger
If Disney's dividend is so small, where can you find a larger one? Just about anywhere.
In the same industry, Paramount Global is yielding 1.39% and Fox 1.76%. But if you stray further, you'll spot some giant yields. Pioneer Natural Resources is now the highest S&P 500 yielder at 11.9%. Amazingly, the stock is up 2.6% this year on top of that giant yield.
Next up is drugstore Walgreens Boots Alliance yielding 9.63%. But that rich dividend comes at a steep price. Shares of the stock are down a crushing 45% this year, more than erasing any dividends you got.
If you're looking for an S&P 500 stock that pays a big dividend and beats the market, that's harder to find. CME Group fits the bill. Shares are up 31% this year on top of yielding 4.1%.
So if Disney is going to impress anyone with its dividend, it's going to need to dig a little deeper.
Top S&P 500 Yielders
| Company | Ticker | Dividend yield | Sector |
|---|---|---|---|
| Pioneer Natural Resources | 11.90% | Energy | |
| Walgreens Boots Alliance | 9.63 | Consumer Staples | |
| Altria Group | 9.32 | Consumer Staples | |
| Invesco | 8.69 | Financials | |
| Verizon Communications | 6.94 | Communication Services | |
| Healthpeak Properties | 6.93 | Real Estate | |
| Boston Properties | 6.89 | Real Estate | |
| AT&T | 6.70 | Communication Services | |
| KeyCorp | 6.62 | Financials | |
| Truist Financial | 6.47 | Financials | |
| Walt Disney * | 0.32 | Communication Services |
