After the closing bell on Wednesday, The Walt Disney Company (DIS) boosted its annual dividend by 34%. Here’s what this news means for mutual fund investors.
Inside Disney’s Dividend Increase
After reporting record results for FY2014, Disney has boosted its annual dividend by 34%. The company pays its dividend every January. The next dividend will be $1.15, compared to last year’s dividend of 86 cents. The dividend will be paid on January 8. Information about the upcoming dividend is below.
| Payment | Declared Date | Ex-Dividend Date | Record Date | Pay Date |
|---|---|---|---|---|
| $1.15 | December 3 | December 11 | December 15 | January 8 |
Mutual Funds to Watch
This dividend increase is a direct results of the company’s continued success and increase in share price. For investors seeking exposure to the company, a mutual fund investment could be a good alternative. Below are the three mutual funds that currently own the largest stakes in DIS.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| VTSMX | Vanguard Total Stock Index Fund | 1.51% |
| FCNTX | Fidelity Contrafund | 1.50% |
| VFINX | Vanguard 500 Index | 1.01% |
The Bottom Line
Disney’s dividend increase is great news for income-focused investors, although its dividend yield still may not be ideal for a dividend investor. Investors interested in Disney may also be interested in SeaWorld Entertainment (SEAS) and Time Warner (TWX)