NEW YORK (TheStreet) -- Shares of The Walt Disney Co. (DIS) were rising by 1.08% to $115 in early market trading Thursday, after the company announced that it raised its cash dividend by 15% on an annualized basis, and moved to a twice a year payout.
Disney declared a semi-annual cash dividend of 66 cents per share, which will be payable on July 29 to shareholders on record as of July 6.
Walt Disney is still raking in profits from the Frozen film and related merchandise, and sees a blockbuster several-year period with the new Star Wars films, according to CNBC.
"Disney delivered significant increases in revenue, net income and EPS for the first half of fiscal 2015. We are pleased to raise our dividend 15% on an annualized basis, as well as increasing the frequency of our dividend payments," company CEO Robert Iger said in a statement.
Walt Disney Co. is a diversified international family entertainment and media enterprise with five business segments including media networks, parks and resorts, studio entertainment, consumer products, and interactive media.
Media networks comprise an array of broadcast, cable, radio, publishing, and digital businesses across the Disney/ABC Television Group and ESPN Inc.
The company is based in Burbank, Calif.
Separately, TheStreet Ratings team rates DISNEY (WALT) CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DISNEY (WALT) CO (DIS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DIS's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 7.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- DISNEY (WALT) CO has improved earnings per share by 13.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISNEY (WALT) CO increased its bottom line by earning $4.25 versus $3.38 in the prior year. This year, the market expects an improvement in earnings ($5.07 versus $4.25).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 10.0% when compared to the same quarter one year prior, going from $1,917.00 million to $2,108.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Media industry and the overall market, DISNEY (WALT) CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Net operating cash flow has increased to $2,918.00 million or 15.47% when compared to the same quarter last year. In addition, DISNEY (WALT) CO has also modestly surpassed the industry average cash flow growth rate of 15.14%.
- You can view the full analysis from the report here: DIS Ratings Report