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How Much Would You Have Today If You Invested $10,000 in Disney 10 Years Ago?

How Much Would You Have Today If You Invested $10,000 in Disney 10 Years Ago?

Financial News
How Much Would You Have Today If You Invested $10,000 in Disney 10 Years Ago?

If you invested $10,000 in Disney stock 10 years ago, you’d be sitting on modest gains today — but probably less than you’d hope from the House of Mouse.

With Disney trading at an average of $99.19 per share in December 2015, that $10,000 investment would have bought you roughly 101 shares. Fast forward to today, with Disney trading at $111.46 per share, those shares are worth approximately $11,257.

That’s a price appreciation of 12.4% over an entire decade — barely outpacing inflation.

The Dividend Story Makes It Better (But Not by Much)

The picture improves when you factor in dividends. From 2016 through early 2020, Disney paid generous semi-annual dividends that grew steadily. In 2016, you would have collected $1.42 per share. By 2019, that annual payout had climbed to $1.76 per share; Disney’s highest dividend ever.

But then COVID-19 hit. In May 2020, Disney suspended its dividend to conserve cash as theme parks shuttered and theatrical releases ground to a halt. That suspension lasted nearly four years.

Disney finally restored its dividend in January 2024, starting at 30 cents per share and increasing to 45 cents in July 2024. While that marked a 50% increase, it’s still roughly half the pre-pandemic payout.

Over the 10-year period, your 101 shares would have collected approximately $813 in total dividends through 2024.

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Total Returns: A Disappointing Decade

Counting both dividends and price appreciation, your original $10,000 investment would be worth approximately $12,070 today, a total return of just 20.7% over 10 years, or about 1.9% annually.

For comparison, the S&P 500 returned roughly 229% over the same 10-year period. If you’d invested that $10,000 in an S&P 500 index fund instead, you’d have around $32,900 today — nearly three times what Disney delivered.

Why Did Disney Underperform?

Disney’s decade included massive acquisitions (21st Century Fox for $71 billion), a complete business transformation around streaming and a pandemic that decimated its core theme park business. The company launched Disney+ in 2019, which initially thrilled investors but required billions in content spending that ate into profits.

The streaming wars proved expensive. While Disney+ gained subscribers quickly, it hemorrhaged money for years before finally turning profitable in the third quarter of 2024. Meanwhile, traditional cable networks like ESPN faced declining viewership and revenue.

Content Original Link:

Original Source At Yahoo Finance

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Original Source At Yahoo Finance

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