Dozens of companies that suspended their dividends in the pandemic have reinstated payouts. Walt Disney isn’t one of them, and investors shouldn’t expect a comeback soon.
Facing a swirl of corporate pressures, Disney (ticker: DIS) appears to have abandoned its dividend for now. While it was never a high-yielding stock—offering just 1.7% before it suspended its dividend in 2020—its lack of a payout highlights the stress on its balance sheet after an acquisition spree left it heavily indebted. A revival in its free cash flow is expected, but it may be years before Disney has enough to return some of it to shareholders.
Don’t Expect Disney’s Dividend Magic to Come Back Soon
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