"Disney paid $1.803 billion in dividends in FY2025, against $10.077 billion in free cash flow, a coverage ratio of 5.6x. Full-year adjusted EPS came in at $5.93, and the annual dividend is $1.50 per share, leaving the earnings payout ratio at a very conservative level."
"Disney suspended its dividend in 2020 and did not reinstate it until December 2023 at $0.30 per share. Since then, the progression has been rapid: $0.45 in July 2024, $0.50 in December 2024, and $0.75 per installment declared in November 2025."
Disney's stock is down 15.1% year to date, trading around $96 with a $1.50 annual dividend yielding approximately 1.6%. In FY2025, Disney paid $1.803 billion in dividends against $10.077 billion in free cash flow, resulting in a conservative earnings payout ratio. Although Q1 FY2026 showed negative free cash flow due to deferred tax payments, management maintains a positive outlook with $19 billion in operating cash flow guidance. Disney's debt is manageable, and the dividend has rapidly increased since its reinstatement in December 2023.
Read at 24/7 Wall St.
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