Could Disney Restart Its Dividend Next Quarter?
At the pandemic's onset, Walt Disney (NYSE: DIS) had to close its doors on several businesses that contribute significantly to its bottom line. Management quickly realized that closing theme parks, hotels, and retail shops could severely harm its cash flows.
As a result, it prudently suspended its dividend to conserve cash and ensure The House of Mouse survives the pandemic. Thankfully, economies are reopening -- albeit in fits and starts -- as the world is vaccinating populations against COVID-19. All of Disney's theme parks are open again and its other businesses are coming back online. The positive developments have shareholders asking: Could Disney reinstate its dividend next quarter?
Disney paid $2.9 billion in dividends in fiscal 2019. Image source: Getty Images.
Source Fool.com
