Key Points
After raising the payout in December last year, Disney's dividend totals $1 per share.
If free cash flow continues rising in the years ahead, it wouldn't be surprising to see the dividend increase as well.
Investors should be aware of the risk that a recession poses.
With its unmatched portfolio of intellectual property, Walt Disney (NYSE: DIS) is a household name in the world of media and entertainment. That deep roster of characters, franchises, and storylines has boosted the company's financial performance recently, giving it the resources to return capital to shareholders.
After pausing the dividend in 2020 due to the onset of the COVID-19 pandemic, the business started resuming payments in early 2024. Income investors might have their eyes on the stock these days. Here's how many shares of Disney you should own to get $1,000 in yearly dividends.
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Image source: Walt Disney.
Operating from a position of strength
If investors want to make $1,000 in annual dividend income from a stake in Disney, they'd need to own exactly 1,000 shares. In December of last year, the company's board of directors approved a $1-per-share cash dividend payout for fiscal 2025. That figure was up 33% from a $0.75 per-share dividend in fiscal 2024. It's worth mentioning that Disney divides its yearly dividend into two semiannual payouts, not quarterly like many other businesses do.
During the latest fiscal quarter (Q3 2025, ended June 28), Disney's free cash flow soared 53% year over year. If the company's robust fundamental performance continues, investors can likely expect future dividend increases.
Be mindful of risks
No one will predict a disruptive pandemic happening again that could force the business to halt its dividend. However, investors should still be aware of any risks that could arise and force Disney's management to conserve cash.
There's no denying that a recession would negatively impact sales and earnings. When times get tough, consumers will be less inclined to visit a Disney theme park or take a cruise. In this situation, the leadership team could choose to cut or suspend the dividend.
However, the company's strong financial performance gives investors a reason to be confident right now.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool has a disclosure policy.