The Walt Disney Co. (DIS) has reinstated its dividend after a three-year hiatus.
The entertainment company announced that it will pay a dividend of $0.30 U.S. per share to shareholders of record as of Dec. 11 this year. The payment will be issued in January 2024.
“We are pleased to declare a dividend for our shareholders while we continue to invest in the company’s future and prioritize meaningful value creation,” said Mark Parker, chairman of Disney’s board of directors, in a written statement.
Disney suspended its dividend in early 2020 at the onset of the COVID-19 pandemic after its theme parks were closed and most of its film and television productions were shutdown.
Disney’s last dividend payment was issued in December 2019 and was worth $0.88 U.S. per share.
Chief executive officer (CEO) Bob Iger has said that bringing back the dividend was one of his top priorities. He pledged earlier this year that the dividend would be back by the end of 2023.
While the dividend is a recurring expense for the company, it is also a sign that Disney believes that it is entering a growth phase and can afford to pass its profits along to stockholders.
Separately, Disney announced the appointment of two new board members. James Gorman, Morgan Stanley’s (MS) CEO, and Jeremy Darroch, who formerly ran Sky, a British television company, will join Disney’s board of directors early in 2024, the company said.
Disney’s stock has declined 6% over the last 12 months and is down 17% through five years. The shares currently trade at $92.69 U.S. each.
