Disney Shareholders Emerge Victorious in Proxy Fight Against Nelson Peltz
We Have a Winner
The ultimate beneficiaries of this drama were Disney shareholders. Since Peltz announced his proxy fight roughly six months ago, Disney stock has gained nearly 54% (as of market close on Tuesday), marking its highest level in nearly two years.
A Look at Disney's Recent Results
A quick look at Disney's recent results suggests there are reasons to be bullish. In the company's fiscal 2024 first quarter (ended Dec. 30, 2023), Disney announced it was on track to achieve its goal of $7.5 billion in cost savings by the end of fiscal 2024, which is expected to boost profits by at least 20% year over year. Perhaps more importantly, the company revealed it expects to achieve profitability for its streaming business this year, making it a key earnings growth driver for Disney.
Disney's Capital Return Policies
Finally, Disney's shareholders will benefit from the company's capital return policies. The company recently boosted its semi-annual per-share dividend payout to $0.45, an increase of 50%. Disney also announced a new share repurchase plan, targeting $3 billion in buybacks this fiscal year.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.