Disney stock advanced Friday after the company said it was reinstating its dividend, having cut the payout amid the Covid-19 pandemic and promising earlier this year to bring it back.
Disney stock gained less than 1% in premarket trading on Friday. The entertainment company Thursday announced a cash dividend of 30 cents a share for the second half of fiscal 2023, payable on Jan. 10, to shareholders of record on Dec. 11. Disney CEO Bob Iger said in February the company planned to bring the dividend back by year-end, and that while it would initially be modest the payout would grow over time .
"This has been a year of important progress for The Walt Disney Company, defined by a strategic restructuring and a renewed focus on long-term growth," the company's chairman, Mark Parker, said in a statement. "We are pleased to declare a dividend for our shareholders while we continue to invest in the company's future and prioritize meaningful value creation."
Nelson Peltz should count it as a victory. The famed investor's Trian Fund Management took an activist stake in the media giant, with the dividend being one target of his campaign.