How to Buy Disney Stock – Can Fairytales Come True?
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The Walt Disney Company (NYSE: DIS) needs no introduction. Famous for iconic characters like Mickey Mouse, Donald Duck, and Elsa, the company has come a long way from its humble beginnings. Today, it's a media conglomerate with a market cap of $193.4 billion. All this diversification has also translated into a stronger bottom line.
Walt Disney reported revenue of $22.08 billion in the second quarter of fiscal 2024, thanks to strong performance at domestic parks and continued growth of its streaming services. New Disney+ subscribers grew 6 million in the quarter to 117.6 million. In addition to Disney+ subscribers, Disney reported having more than 50 million Hulu subscribers and 24.8 million ESPN+ subscribers.
Continued demand for streaming and a recovery in its park business should boost Disney’s revenue and earnings even higher in 2024.
Of course, streaming is just one portion of Disney's diversification. As a media business, it took the reins from George Lucas and bought the Star Wars franchise and everything associated with it. It also owns Marvel, an extremely lucrative franchise, Pixel, ABC, and other media networks. Then there are Disney theme parks, cruise lines, and hotels, and Disney World, Disneyland, and its various affiliated properties draw visitors by the millions. This is why Disney is a blue-chip stock.
Here’s a step-by-step guide on how to get in on the action.
In this article
Step 1: Finding a broker that offers Disney stock
Before you decide to invest in Walt Disney Co., there are two things you should know.
First, when it comes to investing, there are no guarantees. This means that there’s a chance your investment may not result in a positive return. Before you run for the hills, just know this: researching beforehand will help you make an informed choice and increase your chances of making a sound investment.
My second piece of advice? Once you’ve researched, consider how much you can afford to invest. Remember, the stock market can be volatile. To ensure your financial security, create a budget and set aside monthly money for your investment(s). Investing isn’t a “get rich quick” scheme but making a pretty penny over time is possible.
After deciding how much to invest, you’ll need to figure out how to become a Disney shareholder. You can do this in one of three ways: buy stock directly from Disney via Disney’s direct stock purchase plan, purchase individual stocks through an online brokerage firm, or invest in mutual funds, index funds, and ETFs.
If you’re new to investing, opting to work with an online brokerage firm is the quickest (and easiest) way to buy and sell stocks on the go, whether on a laptop or mobile device. What’s more? Several platforms allow users to buy fractional equity shares if they run low on funds. Ready to get started? Here are three online platforms to look into.
Related: Best Brokerages for Beginners
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Stash
Stash is a mobile app that makes investing quick and easy for its users (including beginner investors!). Stash allows account holders to invest as low as $3 monthly in various stocks. Those interested in upgrading from the Beginner account can purchase a Stash+ for $9 monthly. Although there’s no minimum deposit required to open an account, there's a $5 account minimum if you're investing through Stash.
With Stash, users can purchase fractional shares (including The Walt Disney Company) in any dollar amount.
Pros and cons
Pros
- Stash is user-friendly and offers a hands-off approach to investing.
- There’s no minimum deposit required to open an account.
- Monthly fees start as low as $3.
Cons
- Stash is based on a user’s goals and not on buying individual stocks.
- The ETFs available through Stash have a high expense ratio.
Robinhood
Robinhood is a free-trading mobile app that allows users to trade stocks, options, and ETFs. There’s no account minimum, and new members are offered one free stock at sign-up. In addition to Robinhood’s free account option, the app offers a Gold account starting at $5 monthly. Unlike the free version of Robinhood, Gold members must have a minimum balance of $2,000. Robinhood also offers fractional shares, which means members can pay as little as $1 for a “fraction” of a share.
In addition to offering users the option to buy or sell Disney and other stocks, options, and ETFs commission-free, Robinhood allows members to invest in cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, among other cryptocurrencies.
The Robinhood app is ideal for beginner investors interested in getting their feet wet without making a major commitment. It’s easy to sign up, and there are no monthly fees or minimum balance requirements to open a new account unless you’d like to open a Gold account, which is $5 per month and requires a minimum balance of $2,000.
Pros and cons
Pros
- There’s no minimum deposit required to open a Robinhood account.
- Robinhood offers fractional shares, useful for users who can’t afford the full share price.
- Accountholders can open a cash management account that includes a Mastercard debit card.
Cons
- Robinhood lacks the educational tools/data other investing apps (i.e., TD Ameritrade) have.
- Users can open one type of account: a taxable brokerage account.
Step 2: Research Disney shares
Walt Disney and his brother Roy Disney launched the Disney Brothers Cartoon Studio on October 16, 1923. The studio, now globally known as The Walt Disney Company, had many highlights along the way, including Disney’s first-ever sound film (which debuted in 1928), “Steamboat Willie.” In 1937, Disney released its first feature-length animated film, “Snow White and the Seven Dwarfs.” Then, in 1950, Disney entered families' homes everywhere via modern-day television.
Before Walt’s passing in 1966, the brothers opened Disneyland. A second theme park location, Disney World, was opened in 1971, just two months before Roy’s death. Despite losing its founders, the company continued to grow. Today, Disney owns and operates ABC, ESPN, Pixar, Marvel Studios, and Lucasfilm.
Disney’s price history
Disney became a public company in 1957 and sold each share for $13.88. What a deal, huh? If you’d invested $1,000, you could purchase 72 whole shares. After its IPO debut, the company has had seven stock splits. (Meaning your original 72 shares would equal 27,648 shares today.) On December 23, 2020, Disney stock was trading at $173 per share — an initial investment of $1,000 would be worth $4.78 million.
As of May 7, 2024, Disney shares closed at $105.44.
Disney’s dividend information
A dividend is a payment that the company, in this case, Disney, makes to share profits with its stockholders. Dividends are paid regularly (i.e., quarterly, monthly, or semiannually, depending on the company). Disney paid its first common stock dividend in 1956. According to NASDAQ, Disney’s dividends are back after a break of 3 years, and it announced a dividend of 30 cents for the second half of fiscal year 2023, payable on Jan 10, 2024.
Best features of Disney stock
Disney+'s streaming platform continues to gain momentum, and the park's business is doing well, too. Disney forecasts its Disney+ subscriber pool will reach 212 million to 245 million subscribers by the end of 2024.
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Step 3: Open an account & buy Disney shares
Thanks to online brokerage firms, buying Disney stock is simple and can be done within minutes. Here’s a step-by-step guide for investing in Disney using Stash.
Once you’ve clicked “Get started,” you’ll be greeted with a page requesting your email address and password. You’ll need this info on hand to create your account. This process should take 5 minutes or less.
Now, you’ll be asked to provide some personal information (including your name, citizenship status, date of birth, address, phone number, the purpose of investment, and your estimated pre-tax household income) so that Stash can help you determine which investment options are right for you.
After you’ve completed filling out your information, you’ll be asked to choose a plan. Stash offers users two plan options: Growth and Stash+.
Now that you’ve signed up, you can decide how many shares you want to purchase. Use the Disney (DIS) ticker symbol to place your order. You’ll then be asked to choose between a market or limit order. You can also buy fractional shares.
FAQs
How much were Disney shares when the company first went public?
Disney went public in 1957 at $13.88 per share.
How much does it cost to buy Disney shares today?
As of closing on May 9, 2024, Disney shares cost $105.44.
Does Disney pay dividends?
Yes, Disney announced a dividend of 30 cents in the fourth quarter which is payable in Jan 2024.
What is the minimum number of Disney shares that I can buy?
You can buy Disney stock using an online brokerage company or purchase shares directly from the company. Investors can purchase one share or a fractional share using an online brokerage company.
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- Joy Wallet Reader Deal: The Motley Fool is offering 50% off its top stock-picking service for new members (Limited Time)
The bottom line
Before venturing into the world of stock trading, especially on platforms like the New York Stock Exchange, it's crucial to align your investment plan with both your short-term and long-term financial goals. Assessing your overall financial situation is key to ensuring that your investment in stocks, such as purchasing or fractional shares, doesn't jeopardize your financial stability. When considering stocks, pay close attention to the share price and the stock's past performance, as these factors can offer insights into potential volatility and future trends.
You can mitigate some of this risk using online brokerage accounts like Stash or Robinhood by opting for fractional shares, which allow for smaller, more manageable investments. This approach can be particularly beneficial given the inherent volatility of stock prices. Remember, investing in the stock market carries uncertainties like a gamble. Therefore, thorough research and a well-thought-out investment strategy are essential. This includes monitoring the fluctuating stock prices and market trends on the New York Stock Exchange to make informed decisions that align with your financial objectives and risk tolerance.
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Writer
Tabitha Britt is a New York-based freelance writer and editor whose work has appeared on INSIDER, the Huffington Post, and Taste of Home. When she's not glued to her computer screen, she can be found walking her beloved pooch, Biscuit.
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