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Beyond Star Wars: Why Disney Can Raise Its Dividend for Another Decade

Walt Disney Co. (NYSE: DIS) has been one of the greatest growth stocks of the Dow Jones Industrial Average. With franchises from Marvel to Frozen to Star Wars, and with the growth of theme parks, Disney shares have risen exponentially. What stands out in Disney shares is that its stock has risen so much that its dividend yield is barely over 1% — but that dividend should grow handily over the coming decade.

24/7 Wall St. just featured nine great companies that can raise their dividends for the next decade or more. Disney was key among those companies. Its earnings power is very strong, and frankly its last sell-off looked artificially exaggerated. Disney’s chief financial officer even admitted to big accelerated share buybacks as a result of the weakness.

Disney has been raising dividends aggressively, from $0.35 per share in 2009 to $1.32 per share in 2015, and another dividend hike is likely coming soon. What has masked Disney’s great dividend growth is that the shares...


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