The Disney dividend is back after a suspension of more than three years. Euronews Business takes a look at how the company is turning its finances around.
The Walt Disney Company has announced plans to reinstate dividend payments and declared a 30-cent cash dividend per share, scheduled to be payable on 10 January 2024 to its shareholders.
The move to bring back the dividend has been a priority for shareholders and for CEO Bob Iger, who promised in February that the dividend would be back by the end of this year.
Chairman Mark Parker highlighted the company’s efforts in strategic restructuring and a renewed focus on long-term growth, citing it as a pivotal year for the Walt Disney Company.
Parker said: “As Disney moves forward with its key strategic objectives, we are pleased to declare a dividend for our shareholders while we continue to invest in the company’s future and prioritise meaningful value creation.”
The dividend marks a return to the financial landscape for Disney, as the last quarterly dividend payment was 88 cents per share in January 2020.
Following this announcement, Disney’s share price rose about 1% at the end of Wall Street trading.
Disney board battle with Nelson Peltz
Meanwhile, Nelson Peltz, a prominent investor and head of Trian Partners fund, is in a battle with Walt Disney after the entertainment group rejected his bid to join the board.
This has sparked a renewed and intense conflict between the activist investor and Disney’s chief executive, Bob Iger.
Trian Partners, controlling a substantial $3 billion stake in Disney, expressed its intention to directly present its “case for change” to shareholders after Iger once again declined Trian’s request for board representation.
The statement from Trian Partners indicated a loss of approximately $70 billion in shareholder value since their previous engagement with Disney last February.
While an earlier proxy fight was called off by Peltz in February, citing optimism in Iger’s plan to revitalise the company, recent developments suggest ongoing concerns.
Peltz’s primary issues reportedly revolve around Disney’s share price, profit margins, and the board’s decision to extend Iger’s tenure as chief executive until the end of 2026.
In response, Disney asserted its track record of delivering long-term shareholder value and ongoing transformation.