Disney stock experienced a positive surge following the company’s announcement of reinstating its dividend. Previously, the payout was temporarily suspended due to the impact of the Covid-19 pandemic. However, Disney had assured earlier this year that it would restore the dividend, and it has now delivered on that promise.
In premarket trading on Friday, Disney stock saw an increase of less than 1%. The entertainment company revealed that a cash dividend of 30 cents per share will be paid for the second half of fiscal 2023. This dividend is set to be distributed on January 10th to shareholders of record as of December 11th. While the initial payout is relatively modest, Disney CEO Bob Iger emphasized that it will grow over time.
Mark Parker, the chairman of The Walt Disney Company, remarked on the significant progress made throughout the year. He mentioned the strategic restructuring and renewed focus on long-term growth that have been instrumental. Additionally, Parker expressed delight in being able to announce a dividend for shareholders, all while continuing to invest in the company’s future and prioritize value creation.
Notably, Nelson Peltz of Trian Fund Management can consider this news a victory. The renowned investor took on an activist stake in Disney, with the dividend being one of his campaign targets.
As Disney stock gains momentum with the reinstatement of its dividend, investors eagerly anticipate future growth prospects.