Disney (DIS.US) raises dividend by 33% as streaming profits fuel high growth for next three years

Walt Disney Co. (DIS.US) announced a 33% increase in its annual dividend to $1 per share, marking steady progress in its two-year turnaround plan. The dividend will be paid in two installments of 50 cents each in January and July to shareholders. CEO Bob Chapek expressed confidence in the company's new operating prowess in a statement, emphasizing continued investment in the future while increasing shareholder returns. Specifically, Disney paid a dividend of 75 cents per share in fiscal 2024. Prior to this dividend increase, Disney had forecasted earnings growth over the next three years and announced its directv streaming business achieved profitability for a second consecutive quarter. The company suspended its dividend in 2020, when the pandemic forced the closure of its theme parks and sports events. Despite activist investor Nelson Peltz's attempts to restore the dividend, he was not granted a board seat. Chapek made restoring the dividend a priority and reinstated it last year.