Walt Disney Co. to Reinstate Dividend

Walt Disney Co. has announced its plans to reinstate its dividend, which had been suspended at the start of the pandemic. The media giant will be declaring a 30-cent cash dividend per share, with payment scheduled for January 10, 2024. Shareholders of record as of December 11 will be eligible to receive the dividend.

Focus on Long-Term Growth

Chairman Mark Parker expressed his satisfaction with the progress made by the Walt Disney Company throughout the year. He highlighted the strategic restructuring and renewed focus on long-term growth as major milestones. In a release, Parker stated, "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 prioritize meaningful value creation."

Resuming Dividend Payments

This announcement comes after a pause in dividend payments since January 2020 when the company paid a 88-cent per-share quarterly dividend. The reinstatement of dividends reflects Disney's confidence in its financial stability and commitment to rewarding its shareholders.

Investor Pressure

In addition to reinstating dividends, Disney now faces activist pressure. Investor Nelson Peltz intends to secure seats on the company's board of directors. This development further signifies the importance of maintaining strong corporate governance and making strategic decisions in the best interest of the company.

Shares of Disney saw a modest increase of about 1% in Thursday's aftermarket trading.