Walt Disney shares have lost over 45% from their all-time high. Despite this decline, the company continues to be a dominant force in the entertainment industry. According to analysts, purchasing Disney shares entails a significant degree of risk. The company has recently shifted its focus from media and entertainment to streaming. In this sector, there is significant competition from prominent industry leaders such as Netflix and Amazon. While DIS shares have not yet reached their all-time high, analysts remain optimistic about the company’s growth prospects.
This review offers insights into the segments where Disney maintains its leadership, the potential benefits of investing in the company’s shares, and the associated risks. You will also learn how to strategically invest in Disney securities.
The article covers the following subjects:
Major Takeaways
- Disney (DIS) is an international corporation operating in several key segments: media (including the production and distribution of films, cartoons, TV programs, and other content), entertainment services (such as Disney theme parks), and streaming services.
- Due to the pandemic, the company saw a significant drop in revenue generated from its Disney World theme parks, and the media segment witnessed a substantial decline in revenue as well. In light of these developments, the company has decided to shift its strategic focus to streaming platforms.
- Its main competitors in the streaming segment are Amazon, Apple, and Netflix. While Disney remains a leader in this sector, it has not yet caught up to its competitors in several key indicators.
- Between 2020 and 2023, the company did not pay dividends. Payments resumed in 2024, but they were lower than before 2020.
- The risks for investors are relatively high. According to analysts, Disney shares are likely to grow in the long term, albeit at a slow pace, and historical highs are unlikely to be reached anytime soon.
Why Invest in Disney?
The Walt Disney Company is a multinational media conglomerate with a century-long history. The company was founded on October 16, 1923. Initially, Disney specialized in the development and production of commercials and animated short films, and then expanded its portfolio to include animated and live-action feature films and cartoons. In the early 1970s, theme parks began to open, with Disneyland becoming the primary source of revenue for some time.
Disney’s current business structure:
- Studio Entertainment. Film studios such as Walt Disney Pictures, Pixar Animation Studios, Marvel Studios, and Lucasfilm.
- Media Networks. The company owns several television channels covering various topics, including National Geographic, History, ABC, and sports channels.
- Parks, Experiences, and Products. Disneyland, Walt Disney World, as well as Disney Cruise Line, a subsidiary cruise company.
- Streaming. Disney+, ESPN+, Hulu (partially), and Star+ (in some regions). Their merger in the future cannot be ruled out.
The company also generates revenue from Disney character franchises and the sale of books and comics. Disneyland theme parks are located in Japan, China, France, and the United States, where Disney stores sell a variety of souvenirs. In collaboration with Chase and the Visa payment system, the company offers two types of credit cards.
Main competitors are Netflix, Amazon, Columbia Pictures, and Warner Bros. Entertainment.
The global trend for the Disney stock price is predominantly upward, with relatively shallow and frequent dips. However, market volatility remains high. The company’s revenue and net profit depend on the demand for video content and theme parks. However, Disney is encountering challenges in these segments. The fierce competition is prompting Disney to make investments in development projects that may not yield immediate returns. The pandemic has demonstrated that certain business areas are highly vulnerable to Black Swan events.
Nevertheless, the company remains a leader in its core areas. Notably, the fact that Disney’s share price has fallen from its historic highs allows you to buy this financial asset at a more favorable price. According to Disney stock forecasts, the price is expected to appreciate in the future.
Walt Disney shares are included in several dozen stock indices, including the US benchmark S&P 500 index.
Factors that could positively affect the value of DIS:
- Financial indicators. Revenue from the company’s flagship project, the Disney+ streaming service, will be a significant source of income. In 2022, Disney shares experienced a significant decline due to substantial losses of $1.5 billion. The primary factors contributing to this decline were the rising costs associated with content creation and the lack of satisfactory subscriber growth. As of early 2024, the loss had decreased significantly, and in January 2025, the company returned to profitability.
- There has been an increase in the amount of dividends paid. The company plans to resume pre-crisis payments of $0.88 per share.
New major partnerships and acquisitions could boost Walt Disney’s share price. In 2024, Disney invested $1.5 billion in Epic Games, the developer of Fortnite. This is a long-term project, and the growth of Disney DIS shares will largely depend on its success.
In India, the Walt Disney Studios aims to assert its dominance over Netflix, its primary competitor in the market. In the autumn of 2024, it was announced that a joint venture would be established with the Indian holding company Reliance Industries.
Risks of Short-Term Investing
Publication of financial statements: financial results, financial metrics, and the roadmap for the coming year. Revenue growth does not guarantee that Disney DIS shares will rise. Investor sentiment appears to be a more crucial factor. If revenue growth is lower than expected or the number of Disney+ subscribers is lower than that of competitors, this will be perceived negatively.
The overall market situation also affects Walt Disney’s share price. If Donald Trump announces new tariffs or decides to annex another country as the 51st state, the entire stock market, including Disney shares, will likely collapse.
Risks of Long-Term Investing
The primary concern is the company’s capacity to adapt to evolving user expectations. The pandemic has underscored the need for more robust business diversification strategies at The Walt Disney Company. The company’s largest division, which includes theme parks and toy stores, has been forced to cease operations for some time. The company was unable to offset the losses with other divisions.
Disney has learned from this mistake and shifted its focus to Disney+ and streaming services. However, the risk persists. Metaverse technologies, including AI, virtual and augmented reality, are currently undergoing rapid development. Over the next decade, significant changes are likely to occur. Furthermore, approaches to television and streaming services may also change. The primary concern is whether Disney will be able to offer novel solutions to become a leader in these segments.
Understanding Disney Stock Performance
The pandemic has had a significant impact on the company’s financial results.
The screenshot above shows Disney’s capitalization trend over the past 12 years. As you can see, the company has had both successful and underperforming periods. For example, in 2016-2017, shareholders suffered losses. In 2025, the problems persist, but they are more likely due to the overall market decline caused by the US president’s policies.
Despite the growth in revenue, the company incurred losses during the pandemic. The subsequent rate of net income demonstrated instability. Another negative signal is the decline in total assets amid growing total current liabilities. While it is premature to discuss Disney’s financial stability, the company’s ability to generate positive cash flow is an encouraging sign.
Disney’s financial metrics as of March 25, 2025:
General overview:
- Price-to-Earnings (P/E) ratio – 32.53. With a normal P/E ratio of 20–25, this value is too high, indicating that Disney shares are overvalued. The combination of a high P/E and a lower forward P/E suggests that investors expect Disney’s earnings to grow through park renovations, the development of Disney+, and other initiatives.
- For large companies, return on equity (ROE) below 10% is generally considered low. This is particularly evident in the entertainment and media sector, where some of Disney’s competitors, such as streaming and IT companies, have achieved double-digit ROE. Potential factors contributing to this decline include the impact of recent losses. Significant investments, particularly in streaming, have yet to fully yield their benefits.
- Disney’s profit margin of 6.1% appears modest, especially compared to “pure” media companies, where margins can exceed 10–15%. However, Disney operates numerous capital-intensive businesses, including parks and cruises, which bear a significant portion of fixed costs.
Although Disney's metrics are below average, they are not critically low, partly due to increased investments in the streaming segment.
How to Buy Disney Stock
In theory, you can buy Walt Disney shares directly. However, it is much easier and faster to do so through a broker if it operates in your country of residence. As a rule, registration and verification are carried out online. Then, you can top up your trading account and purchase Disney stock.
1. Direct Purchase Through Disney
You can only invest in Disney directly if there is a corresponding offer. The company posts information on its website about how buyers can contact them to agree on the terms and algorithm of the direct stock purchase plan. Disney has the Walt Disney Company Investment Plan Prospectus on a separate website.
You can buy Disney shares if you meet the following conditions:
- The DIS Direct Stock Purchase Plan is only available to residents of the United States and Canada.
- The initial cash investment is $250, payable in one lump sum or in five installments of $50 each.
- A one-time enrollment fee of $20, an investment fee via check of $7, a sales fee of $20–$25, and a fee per share of $0.02.
Fees and commissions, as well as other terms and conditions of the Walt Disney Company Plan Prospectus, are subject to change.
2. Using a Brokerage Account
There are two ways to buy Disney shares through a broker:
- Purchase through a stockbroker. You can purchase DIS shares, which will be held in custody at a depository or repository. The disadvantage of this option is the high minimum investment required. Disney shares are primarily traded in the US stock market. Non-residents may have difficulty buying securities on the NYSE due to requirements imposed by exchanges and regulators. One alternative is to purchase securities on the Milan, Frankfurt, Buenos Aires, or Santiago stock exchanges. However, the entry threshold will still be high, and there will be high broker and depository fees.
- Another option is to buy Walt Disney shares through a CFD broker. This can be done in a few clicks in almost any country.
How to buy Walt Disney shares via a CFD broker:
1. Open a demo or live account. If you choose a live account, you will need to verify your identity by sending scans or photos of documents that confirm your identity and address. A demo account is sufficient for training purposes. Select the “Trade Forex” tab and click the “Demo” button in the Account type section, then click the “Try demo-mode” button.
Complete a brief and straightforward registration to start trading. You will need to specify your country of residence, enter your email address to link it to your Client Profile, and create a password.
2. Select the Trade tab in the vertical menu. In the horizontal menu, select NYSE shares, as the stocks are listed on the New York Stock Exchange, and find the DIS instrument.
You will see a price chart on which you can plot technical indicators, draw patterns, view the history of quotes on different time frames, etc.
3. Add any amount of money to your demo account by clicking the Deposit button. In the market order, set the purchase volume in lots, place stop-loss and take-profit orders, and click Buy or Sell for opening a long or short trade, respectively. You can set a limit order.
How to buy Disney shares on a live account? Similarly, you first need to fund your trading account.
Please note that you can use leverage of up to 1:1000. This means that you only need a minimum of $50 to start trading. Remember that the higher the leverage, the higher the risk.
3. Fractional Shares Investment
The option to purchase fractional shares of Disney (DIS) involves investing in securities in amounts less than 1 share. For example, if one share is priced at $100, and your available budget is also $100. However, if you are interested in building a diversified portfolio, you can purchase 0.01 shares for $1. The minimum lot size is 0.01, and the same incremental steps (0.01, 0.02, 0.03, etc.) are standard for fractional shares.
However, there are some nuances:
- This is possible if you use a brokerage that offers fractional share investing. The minimum lot size is specified in the contract specifications.
- As a stockholder, you own a proportional share of the company’s stock. This means that you will receive proportional dividends.
Before buying Disney shares, calculate the total commission. The broker may charge a minimum commission regardless of whether you buy one share or one-hundredth of a DIS share.
Alternative Ways to Invest in Disney
One of the fundamental principles of investing is to diversify your investment portfolio. If you are uncertain about which stocks to purchase or if you lack the time to monitor them and rebalance your portfolio, investing in exchange-traded funds (ETFs) is often the preferred option.
ETFs are designed to create diversified portfolios and manage them. Investors are only charged a management fee.
The following are examples of ETFs and index funds that include Disney shares:
|
Name and ticker symbol of the ETF fund, index fund |
ETF management expense ratio |
Portfolio structure |
|
iShares U.S. Consumer Discretionary ETF (IYC) |
0.39% |
Large- and mid-cap stocks. Amazon accounts for the largest share (14.6%). Disney accounts for 3.13%. |
|
iShares Global Comm Services ETF (IXP) |
0.41% |
A diversified portfolio of companies from different segments and sectors. The largest share is held by META (21.46%). Disney’s share is 4%. |
|
Vanguard S&P 500 ETF (VOO) with quarterly dividend payments |
0.03% |
Almost all blue-chip stocks are included. The largest share is held by Apple (7.24%) and Nvidia (6.07%). Disney accounts for 0.41%. |
|
SPDR S&P 500 ETF Trust (SPY) |
0.0945% |
Blue chips and tech companies. The technology sector accounts for 30.36%. Disney’s share is 0.37%. |
|
First Trust S-Network Streaming & Gaming ETF |
0.7% |
Companies in the consumer and entertainment segment. Tencent has the largest share of 5.65%. Disney’s share is 3.78%. |
Managing Your Disney Investment
The management of investments in the Walt Disney Company is contingent upon the selected strategy. Long-term investors should focus on fundamental factors and financial results, while temporary setbacks can be disregarded. Short-term investors should be able to perform technical analysis, which includes monitoring reversal patterns, flat zones, resistance and support levels, and trend lines. It is also essential to stay informed and follow risk management guidelines.
Investors should monitor the following metrics and indicators:
- The financial statements and metrics include the company’s revenue compared to forecasts, net profit, and EBITDA. A key metric that provides insights into a company’s financial health is its Debt-to-Equity ratio, which indicates its financial leverage and its ability to meet its financial obligations.
- Mergers, acquisitions, and partnerships. Large partnerships requiring significant initial investments may be perceived negatively. The same applies to news related to investments in new product development.
- Parks, Experiences, and Products. Changes in operating income and its percentage of total revenue are essential factors to consider. According to industry analysts, demand in the entertainment segment has stabilized. The company has recovered its losses after the pandemic, but further revenue growth in this area is limited.
- Disney+. The change in the number of subscribers is compared with the increase or decrease in users among competitors.
Despite temporary difficulties and fierce competition in all segments, analysts remain optimistic in their assessments. The company’s shares are not expected to reach new highs in the near future, but they are likely to continue appreciating in value.
Source: TipRanks. According to analyst ratings
Source: Twelve Data
Before proceeding with the purchase of Disney shares, it is necessary to answer the following questions:
- Which investment strategy would you prefer? When it comes to long-term investment, purchasing DIS shares at this time and retaining them for one to two years or more is a strategy that can be considered. This approach allows you to ignore any short-term market fluctuations. It is likely that the return will be approximately 12–15% per year, comparable to the level of index returns. If you are planning to trade intraday on corrections, it is essential to conduct both technical and fundamental analysis.
- What share of the Walt Disney Company will be in your portfolio? Diversification of investment portfolios is essential. It is better to have no more than 10% of the portfolio’s value in shares of a single company.
- What is the total amount of commissions? Stock brokers typically require a high enrollment commission. However, this investment can be lucrative for those seeking long-term growth opportunities. CFD brokers charge daily swap fees, making them more suitable for short-term trading strategies.
Remember that the most important aspect of investment management and financial planning is adherence to risk management rules.
Disney’s Dividend Policy
Disney is among the companies that allocate a portion of their earnings to their shareholders in the form of dividend payments. According to public data, payments have been made almost consistently on a biannual basis since 1971. The dividend amount increases periodically.
In 2020, the company experienced a decline in revenue across nearly all its business segments, except for the streaming segment. As a result, the decision was made to refrain from paying dividends and instead allocate the $3 billion that had been freed up to the development of the Disney+, ESPN+, Hulu, and Star streaming services, with plans to merge them in the future.
Here are some facts about Disney’s dividend policy:
- The Walt Disney Company shareholders receive dividends twice a year, although this payout schedule has not always been consistent. During different periods, dividends were paid quarterly or only once a year.
- No dividends were paid between 2020 and 2023, but payments were reinstated in December 2023.
- The amount paid per share rises periodically. However, the dividend yield can decrease if the share price declines. Due to the pandemic, the company reduced the amount of subsequent payments. However, recent data indicates that dividend payouts may rise in the future.
- The dividend payout ratio, defined as the ratio of total dividends paid to shareholders to net income, stands at 24.33%, meaning that Disney allocates approximately 25% of its net income to investor payments.
|
Ex-dividend date (investors are eligible to receive dividends if they purchase shares before this date) |
Total dividends in USD per share |
Dividend payment date |
Annual yield rate as a percentage of share price |
|
24.06.2025 |
0.5 |
23.07.2025 |
1.01% |
|
16.12.2024 |
0.5 |
16.01.2025 |
0.84% |
|
08.07.2024 |
0.45 |
25.07.2024 |
0.77% |
|
08.12.2023 |
0.3 |
10.01.2024 |
0.32% |
|
13.12.2019 |
0.88 |
16.01.2020 |
1.19% |
|
05.07.2019 |
0.88 |
25.07.2019 |
1.23% |
|
07.12.2018 |
0.88 |
10.01.2019 |
1.50% |
|
06.07.2018 |
0.84 |
26.07.2018 |
1.59% |
|
08.12.2017 |
0.84 |
11.01.2018 |
1.54% |
|
06.07.2017 |
0.78 |
27.07.2017 |
1.48% |
|
08.12.2016 |
0.78 |
11.01.2017 |
1.46% |
|
07.07.2016 |
0.71 |
28.07.2016 |
1.44% |
|
10.12.2015 |
0.71 |
11.01.2016 |
1.23% |
|
01.07.2015 |
0.66 |
29.07.2015 |
1.59% |
|
11.12.2014 |
1.15 |
08.01.2015 |
1.26% |
|
12.12.2013 |
0.86 |
16.01.2014 |
1.22% |
|
06.12.2012 |
0.75 |
28.12.2012 |
1.51% |
|
14.12.2011 |
0.6 |
18.01.2012 |
1.65% |
|
09.12.2010 |
0.4 |
18.01.2011 |
1.08% |
|
10.12.2009 |
0.35 |
19.01.2010 |
1.14% |
|
11.12.2008 |
0.35 |
20.01.2009 |
1.48% |
|
05.12.2007 |
0.35 |
11.01.2008 |
3.01% |
|
13.06.2007 |
0.64 |
12.06.2007 |
2.82% |
|
13.12.2006 |
0.31 |
12.01.2007 |
0.90% |
|
08.12.2005 |
0.27 |
06.01.2006 |
1.05% |
|
08.12.2004 |
0.24 |
06.01.2005 |
0.89% |
|
10.12.2003 |
0.21 |
06.01.2004 |
0.94% |
|
11.12.2002 |
0.21 |
09.01.2003 |
1.23% |
|
05.12.2001 |
0.21 |
21.12.2001 |
1.05% |
|
06.12.2000 |
0.21 |
22.12.2000 |
0.68% |
Notably, dividends are paid to DIS shareholders. When trading CFDs, you do not own the underlying company’s shares; instead, profits are generated through fluctuations in the share price of the underlying company. In this regard, the broker’s trading conditions play a pivotal role. For instance, instead of dividends, a “dividend adjustment” can be applied. It is considered an addition to income when a long position is open, but it is deducted when a short position is formed. In the context of CFDs, the accrual of dividends on a short position results in a loss for the trader.
Stock Split History and Prospects
Throughout its history, the company has undergone 14 stock splits, with the first one occurring in 1956. Eight stock splits were executed with symbolic ratios ranging from 1.02 to 1.03. These decisions may have been related to regulatory requirements or the optimization of capital structure.
Here’s a summary of Disney’s stock splits:
|
Date |
Amount |
|
10.07.1998 |
3-for-1 |
|
18.05.1992 |
4-for-1 |
|
06.03.1986 |
4-for-1 |
|
16.01.1973 |
2-for-1 |
|
01.03.1971 |
2-for-1 |
|
20.08.1956 |
2-for-1 |
The stock splits were carried out when Walt Disney’s share price surpassed $100. There is a possibility that another split will occur as soon as the price approaches its all-time high of $201.91. For existing Disney shareholders, this would mean an increase in the number of shares, accompanied by a proportional decrease in the DIS price, while the total value of the portfolio remains unchanged. For potential buyers, this would mean a more affordable investment asset.
Conclusion
Some have expressed concerns about the future of Disney, referring to the company as a “sinking ship.” However, others anticipate an increase in the company’s share value. The company’s success with films under the Marvel, Pixar, and Star Wars brands from 2012 to 2019 may have had unintended negative consequences. During the films’ peak popularity, DIS shares experienced significant growth, prompting the company to allocate resources towards cinema development. However, during the pandemic, revenue in this segment fell sharply, as did the theme park sector.
In the current market, traditional television is becoming a thing of the past as consumers increasingly switch to streaming platforms. In response, the company has shifted its focus. The direct-to-consumer division finally demonstrated profitability in 2024, though Disney+ and Hulu remain behind Netflix. Notably, it is also competing with Amazon and Apple TV.
Disney’s long-term prospects are encouraging. The company’s long-standing history, spanning over a century, further substantiates its commitment to excellence. Analysts project that DIS shares will increase, although not at the same rate as before the pandemic, assuming the US stock market does not collapse.
Invest in Disney Stocks FAQs
This offer is available to residents of the United States and Canada. The company’s website offers a prospectus that outlines the purchase terms: a minimum investment of $250, a commission of $0.02 per share, and a total commission of $40 for registration and market order processing.
It depends on your strategy. The optimal investment horizon is 1–2 years, coinciding with a market rebound and a stable US stock market, as evidenced by rising Dow Jones and S&P 500 indices. For intraday trading, technical analysis signals are crucial, including indicators, patterns, and support levels.
Firstly, an increase in the value of shares will result in income. At certain times, the company’s shares have demonstrated an annual return on investment ranging from 20% to 50%. Secondly, the company has a consistent dividend payment history, with the exception of the period during the pandemic.
Disney pays $0.50 per share every six months, an annual yield of 0.85% to 1%. The maximum payments were $0.84–$0.88 in 2018–2020, or 1.24–1.53% YoY. During the pandemic, the company suspended payments. In the future, the size of dividends may increase.
As a rule, large-company shares rebound from historic highs and then rise again. The DIS stock is suitable for long-term investment. However, other blue chip stocks or US stock indices may prove to be more favorable. You can purchase DIS to diversify your investment portfolio and mitigate risk.
According to publicly available information, the answer is no. Warren Buffett first purchased 5% of the shares in 1966 and sold them in 1967. The investment company Berkshire Hathaway repurchased the shares in 1995 but sold the remaining shares in 2000.
Price chart of DIS in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance broker. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2014/65/EU.
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