The Walt Disney Company (DIS): This Media Giant Can Do More Than its Peers

Doing More

The Walt Disney Company (NYSE:DIS) has also been paying up for content. Marvel and Lucasfilm cost $4 billion each, for example. For Disney, however, that content can be spread out over a large base. Clearly, it will make more movies and television shows based on the two purchases and, thus, have more to sell to others. But any company could do that.

What other companies don’t have is Disney’s amusement assets. Disney already has a section of its Florida Disney World parks dedicated to Star Wars. Now there are rumors that a big Star Wars themed park expansion is in the cards. And the brand is perfect for the recent trend toward amusement parks creating different “worlds” within a park.

The best example is the Harry Potter themed section of Universal Orlando. The section recreates scenes from the popular book and movie series. That section helped the amusement park set an attendance record in the first year after it opened. While Harry Potter is big, Star Wars is one of the few concepts that is bigger. Done well, Disney could find this a huge customer draw. And it still hasn’t done anything to integrate Marvel’s collection of comic book characters into the parks.

Never Cheap

The Walt Disney Company (NYSE:DIS) shares are never cheap, with good reason. For example, the top line grew every year over the last decade except in 2009. Earnings have traversed a similarly strong upward path. The dividend has been increased annually for years, as well. And, of course, it owns all of that great content.

An around 1.2% dividend yield and a price near all time highs makes this stock most appropriate for growth and momentum investors. However, it should be on everyone’s watch list, just in case a broader market sell-off creates a buying opportunity.

The article This Media Giant Can Do More Than its Peers originally appeared on Fool.com and is written by Reuben Brewer.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Netflix and The Walt Disney Company (NYSE:DIS). The Motley Fool owns shares of Netflix and Walt Disney. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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