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Disney Boosts Dividend 33% After Achieving Streaming Profit

The Disney+ website on a smartphone in the Brooklyn borough of New York, US, on Monday, July 18, 2022. Walt Disney Co.'s ESPN will raise the price of its streaming service by 43% next month, betting that it can help cover the escalating cost of sports rights without losing subscribers who are grappling with soaring inflation. Photographer: Gabby Jones/Bloomberg (Gabby Jones/Bloomberg)

(Bloomberg) -- Walt Disney Co. raised its annual dividend by 33% to $1 a share, another sign that a turnaround plan put in place two years ago is paying off.

The money will be distributed to shareholders in two 50-cent installments in January and July of next year. 

“With the company operating from a renewed position of strength, we are pleased to increase the dividend for shareholders while continuing to invest for the future,” Chief Executive Officer Bob Iger said in a statement Wednesday. 

In fiscal 2024, Disney paid a dividend of 75 cents per share. The new payout comes after Disney forecast earnings growth for the next three years in November and posted its second consecutive profit from its streaming TV business. 

Disney suspended its dividend in 2020 when the pandemic shut down its theme parks and live sports business. Activist investor Nelson Peltz made restoring the dividend a part of his unsuccessful efforts to get a board seat. Iger made it priority as well and the company started paying a dividend again last year.

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