Exchange Express – 10 Reasons to Buy and Hold Disney Stocks Forever



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Whether because of the fairy dust, that recently the actions of Disney (WKN: 855686) are high and have increased again? The media giant is once again a real darling on the market, and that's understandable.

Disney is up again and investors are starting to realize it. Let's take a look at the many reasons why this well-oiled company is a compelling title that you can buy and keep forever.

1. Streaming for the year 2019

For decades, Disney has created one of the most impressive film and license catalogs on which to base new movies and series. In a few months, Disney will try to do all this with its own streaming service.

Disney draws its own spin-off from some of its largest franchise companies, which will strengthen the platform with its own content. The reach of Disney will increase because the world is just a click away.

2. Strong sales growth

Disney closed the 2018 fiscal year with the highest sales growth in four years. Analysts expect a slowdown in revenue growth over the next fiscal year, but it's hard to bet against a company that has posted positive revenue growth in 25 of the past 28 years.

3. The magic of the multiplex

Ralph breaks the Internet remains in the United States for the second weekend in a row the best box-office film, and it's no coincidence that Disney movies in big cinemas have a habit of dominating. The Buena Vista brand is responsible for three high-income films this year: Black Panther. Avengers: war in the infinite and The Incredibles 2,

And it was not just in 2018. Disney also released the two biggest movies of 2017 and the three most financially successful films of 2016.

4. Big investments report

Disney World Florida and Disneyland California will be major additions next year Star WarsOpen the world. After years of developing this important brand and leading the market, Disney is investing heavily to drive traffic growth over the next few years.

Disney World is building new hotels and creating new ways for guests to feel comfortable in this huge complex. Meaning: who loves amusement parks, Disney will not circulate. And Disney's efforts are already paying off: the resort in Florida has twice increased this year's annual package prices, entry has increased by 15% over the previous year.

5. Dividends!

Disney is not yet an aristocrat of the dividend, but the payment has increased over the past eight years. The return is modest at 1.5%, but the stock continues to rise and the yield drops or the dividend increases when the value of the stock decreases or stagnates. However, dividends are important.

6. The Star WarsThe hotel arrives

No question: in a few years, it will be at Disney World Star WarsOpen hotel. It will be transparent with the rest Star Wars: Galaxy's Edge more importantly, guests will be immersed in interactive terrain during their stay. So, you are practically caught in the universe, where even the windows of space are projections of the universe. Disney has not revealed how much it would cost the guest, but it should certainly be worth it for the real fans.

7. Marvel works incredibly well

Stan Lee died in November. But Disney grew up even after the death of Walt Disney. Disney spent about $ 4 billion on Marvel and it was worth it. Marvel is behind many of the biggest Hollywood movies, including three of the five biggest blockbusters of the year.

8. ESPN should remain important

Just ten years ago, ESPN was considered an important brand for Disney. The first sports-only cable television network was the jewel of the Capital Cities / ABC acquisition, worth $ 19 billion, almost 25 years ago. Now, ESPN is considered a challenge for Disney, as customers leave cable TV on the left and no longer want to go to bed for paid content. Meanwhile, the rights to sports offers are becoming more expensive. However, the prices will eventually be in the right place and ESPN will remain the undisputed leader of the sector.

9. Fox also comes

Disney won the contract 21st Century Fox (WKN: A1WZP6), and the $ 71 billion deal is expected to be finalized soon. The biggest purchase of Disney's history is pushing Disney's already impressive content library to a higher level. Everything seems to be going very well. James Cameron's avatar film will have several sequels in the coming years, as well as a majority stake in Hulu.

Hulu is a big brand with minority positions under the leadership of several media giants. It will be interesting to see what Disney plans to do because they now hold 60% of the company's capital.

10. slow and steady

Disney may not be sensational, but for the tenth year in a row, you are now in the range of dividend-adjusted returns. No action will increase each year, but here you can believe in magic.

Disney made a surprise in November when, for the second time this year, they increased the prices of their annual tickets. But now, it shows why society can afford aggressive prices. Fans who complain now will still pay the entrance fees, and the shareholders can only be right.

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Motley Fool owns and recommends Walt Disney shares. Rick Munarriz owns shares in Walt Disney. This article was published on 5.12.2018 on Fool.com. It has been translated so that our German-speaking readers can participate in the discussion.

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