The Walt Disney Company (DIS): Why You Should Stick With It No Matter What

Thus far, Time Warner has purchased nearly $870 million of its stock, and it is to gain from its new capital structure. As seen below, its price is outperforming the S&P. But, the major increase from about 5%-15% growth clearly shows that stockholders are in favor of the direction of Time Warner, especially since the public announcement to sell Time Inc.

Need another reason to choose Disney?

Look at dividend payments.

If we assess dividend payments from the past 10 years, we see that The Walt Disney Company (NYSE:DIS)’s CAGR of dividends paid is over 13%! With current inflation rates, such a finding is coveted and hard to beat.

Earlier this year, Comcast Corporation (NASDAQ:CMCSA) increased its annualized dividend payment by 20% to $0.78. However, even with an increase in revenue, earnings, and free cash flow, the firm continues to lose a valuable customer base. It has lost nearly 360,000 video customers over the past year, and with increasing prices that number will further increase. The problem is that increasing revenues and decreasing customers means that Comcast Corporation (NASDAQ:CMCSA) is receiving a higher margin, at the expense of customers. And, in such a tight industry with Netflix, Inc. (NASDAQ:NFLX), for instance, Comcast may soon be losing more than just customers.

Conclusion

If you’re thinking about a lower risk, long term investment, consider adding Time Warner to the mix. If you look to make money in short swings in days or weeks, you have some options.

But one thing is for sure: stick with Disney.

The article Kids Love Disney and So Should You originally appeared on Fool.com and is written by Brendan Marasco.

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