What better time of the year to take stock of Disney stock (NYSE: DIS) than the year’s end?
And what a year Disney had. By most measures it was an overwhelming success. Disney acquired 21st Century Fox. Launched a successful streaming service in Disney+. Frozen 2 was a hit. Marvel is the hottest IP in cinema. Rise of the Resistance is hugely popular, largely redeeming the disappointing opening of Galaxy’s Edge. Not to mention new attractions have been announced at nearly every Disney park.
The top brass have to be relieved. ( Click here to see how Disney earns money at the parks.)
Disney ended 2018 with a 36% drop in their earnings per share (EPS), a measure of a company’s financial health. Following that news, Disney stocks started the year with a plunge. However, they made a quick recovery, ending 2019 almost $50 per share higher. That’s a 70% increase. Stock value reached an all-time high in November at $151.64 per share. It’s been hovering around that value ever since.
It appears Disney is not being stingy with their good fortune. Shareholders are being rewarded with a dividend of $0.88 per share by the Board of Directors. This brings the 2019 fiscal year dividend total to $1.46. Not too bad.
Employees of at least one of the parks want their cut of the revenue, too. Complaints of low pay have lingered at Disneyland in California for a year now. While this trend spans nearly every industry, Disney’s gains this year, which outpaced the stock market’s, puts them in the spotlight. Workers are asking for a $15 an hour minimum wage and have filed suit in the Orange County Superior Court over a ballot measure that guarantees that rate to workers in Anaheim’s resort district. Last year Disney announced a deal to raise the wages of trade union employees to $15 an hour by 2021. They may be looking to strike a similar deal with Unite Here Local 11, a hotel and restaurant worker’s union.
Investors are now looking to the future. Anticipation is high for 2020. In spring, a new Pixar movie and live action Mulan will be released, along with yet another Marvel movie, Black Widow. Epcot is getting an overhaul and a new floating spectacular with fireworks called Harmonious. Several major rides are set to open, including Mickey and Minnie’s Runaway Railway at Disney’s Hollywood Studios and Remy’s Ratatouille Adventure at Epcot.
It’s a good thing, too. Competition is stiff, at least for the Orlando theme parks. SeaWorld Orlando just opened Sesame Street Neighborhood and has announced a new coaster. Universal Studios recently launched Hagrid’s Magical Creatures Motorbike Adventure and announced a new Jurassic Park themed roller coaster.