News

What the Walt Disney Dividend Increase Means for Mutual Fund Investors (DIS)

Shauna O'Brien Dec 04, 2014

After the closing bell on Wednesday, The Walt Disney Company (DIS) boosted its annual dividend by 34%. Here’s what this news means for mutual fund investors.

Inside Disney’s Dividend Increase

After reporting record results for FY2014, Disney has boosted its annual dividend by 34%. The company pays its dividend every January. The next dividend will be $1.15, compared to last year’s dividend of 86 cents. The dividend will be paid on January 8. Information about the upcoming dividend is below.

Payment	Declared Date	Ex-Dividend Date	Record Date	Pay Date
$1.15	December 3	December 11	December 15	January 8

Mutual Funds to Watch

This dividend increase is a direct results of the company’s continued success and increase in share price. For investors seeking exposure to the company, a mutual fund investment could be a good alternative. Below are the three mutual funds that currently own the largest stakes in DIS.

Symbol	Mutual Fund	Stake
VTSMX	Vanguard Total Stock Index Fund	1.51%
FCNTX	Fidelity Contrafund	1.50%
VFINX	Vanguard 500 Index	1.01%

The Bottom Line

Disney’s dividend increase is great news for income-focused investors, although its dividend yield still may not be ideal for a dividend investor. Investors interested in Disney may also be interested in SeaWorld Entertainment (SEAS) and Time Warner (TWX)