Disney's Frozen Annual Dividend - Here's Why Investors Should Let It Go

Disney just declared its January dividend, and did not raise the payment on schedule. The $0.88 dividend represents a freeze, and not a cut, but this is still concerning to certain, income oriented investors.

Disney shares broke out above the $120 resistance level that had held them down since the summer of 2015 when the cord cutting phenomena became the number one threat facing traditional media names.

During the fall, the excitement around Disney cooled off a bit and some wondered whether or not the rally was over. As shares fell from their 52-week highs in the mid-$140’s down to the $130 range, investors began to question whether or not we’d see that $120 level tested again, this time to the downside. Oftentimes, prior resistance becomes support after long periods of consolidation, but shares never sunk that low as the Disney+ launch ignited about wave of buying.

And now, almost a month after Disney’s streaming service launched, it’s clear that the market underestimated the power of Disney’s content and fan base.

Disney+ had over 10 million subscribers after the first 24 hours of its existence. Several weeks later, reports surfaced claiming that the Disney+ momentum was far from over, with the service

And, on top of the growth in the streaming space, Disney continues to execute in the other areas of its business as well.

Theme parks have shown strong growth throughout 2019, with revenues increasing 6% and operational earnings up 11% during the trailing twelve months.

The company has already broken its own global box office record this year and with Frozen 2 currently starring in theaters and Star Wars: The Rise of Skywalker still on the docket, it’s likely the new record will approach the $10 billion mark.