That being said, Disney has been able to grow for decades thanks in part to acquisitions and in 1996, when it purchased ABC and a few other tv networks, I don’t think anyone could have imagined how big a part of that deal would become. No, not ABC, the national channel but rather ESPN, the sports specialized chain. Over the years, ESPN has been able to completely dominate the sports scene taking its dominance to all kinds of sports, as well as other mediums such as radio, internet, etc all around the world.
How Big Is ESPN? In fact, ESPN contributed $18.7B in revenues last year which is nearly half of Disney’s $40.9B!! So yes, ESPN is by far the biggest portion of Disney with the theme parks lagging at $11.8B and film studios far behind at $6.3B. I’ve heard some say that Disney should spin off ESPN but I do think that they complement each other incredibly well. It’s important to understand how critical ESPN is though because when you’re looking at Disney, you should not imagine this traditional children centered
How Do ESPN’s Financials Look? First, here is a look at the stock over the past decade:
Dividend Stock? Reasonably.. So yes, Disney has been able to increase its dividend in the past few years but it remains under 1.50%, which is probably enough to attract someone who considers dividend important (such as myself) but probably not enough to justify a spot in a dividend portfolio such as the USDP. Here
|Ticker||Name||Current Dividend Yield||5 year Dividend Growth||1 year Dividend Growth|
|DIS||Walt Disney Co/The||1.2||14.12||50|
|Ticker||Name||Sales Growth (1 year)||Sales Growth (5 year)||EPS growth (5 year)||P/E ratio||P/E Next Year||Margins growth||Payout ratio||Return on Equity||Debt to Capital Ratio|
|DIS||Walt Disney Co/The||7.44||4.43||13.81||16.72||14.26||3.7||15.63||14||0.17|
Convinced? I think Disney is a nice fundamental long term play, what are your thoughts on it?
Disclaimer: No positions on Disney