Thought this to be an interesting read for those concerned about all the red the past few days.
Disney (NYSE: DIS) needs no introduction. The company's timeless characters and storylines are beloved by millions around the world. But many people don't realize just how vast -- and how valuable -- Disney's empire has become.
In addition to its namesake brand, Disney also owns Marvel, Pixar, and Lucasfilm. Thus, it owns the rights to massively popular franchises such as the Avengers, Toy Story, and Star Wars.
Disney excels at turning these characters into cash for its investors. Through its incredible collection of movie studios, TV networks, theme parks, and cruise ships, Disney generates a lush stream of profits from its timeless brands. The entertainment titan is committed to passing this cash on to shareholders in the form of share repurchases and a steadily growing dividend, which currently yields 1.6%.
A host of new movies and theme park attractions should keep profits flowing in the coming years. Moreover, investors are growing increasingly excited about Disney's new streaming video services, which should help to lessen the risk posed by collective cord-cutting to the company's business. Less risk could mean more reward for shareholders when new buyers bid up Disney's shares as they become more confident in the company's future growth prospects.
This process appears to have already begun. Disney's stock is up more than 20% so far in 2019, following multiple analyst upgrades. But with Disney's shares still trading for only about 20 times forward earnings, plenty of gains could lie ahead for investors who buy today.
New England Patriots - 2019 Super Bowl Champions!!!
Boston Red Sox - 2018 World Series Champions!!!
