Walt Disney
is celebrating its 100th birthday. Long-term shareholders have reason to celebrate despite more recent turbulence.
Walt Disney and his brother Roy officially founded the Disney Brothers Cartoon Studio on Oct. 16, 1923. Moving from stories like Steamboat Willie—Mickey Mouse’s film debt—and the lavishly illustrated Snow White and the Seven Dwarfs to Finding Nemo and Moana, the movie maker has been a leader in both hand-drawn and digital animation. Its vast portfolio of content underpins a sprawling theme-park empire.
The last 100 years haven’t been without their share of controversies and struggles. Strikes, executive leadership changes, and a fight with Florida Gov. Ron DeSantis are some of the more recent challenges
Disney
(ticker: DIS) has faced. But that doesn’t change the fact that long-term shareholders have seen solid returns on their investments.
Dow Jones Markets Data has data on the stock’s performance dating back to January 1972, which is 32 years after the company issued its first stock. Since Jan. 21 that year, Disney stock has returned 6,139% without dividends and 9,847% including them. That compares to the 4,075% price return of the
S&P 500
from Jan. 21, 1972, through Friday.
If someone had invested $100 into Disney back then, that investment would now be worth $6,238.91 without dividends and $9,946.59 including the payouts.
1973 was the stock’s worst year, when it fell 59%, while 1975 was the best, with a gain of 140%. Since 1972, Disney stock has closed higher for 31 years and lost ground for 20.
Shares hit their highest closing level yet at $201.91 in March 2021 amid investor excitement around the company’s next big thing: streaming through Disney+. But the streaming business has proven to be very expensive, and recent movies and shows have struggled to get people to sign on to Disney+ or go to the theaters. Chief Executive Bob Iger, who stepped down in 2020, returned to Disney in 2022, seeking to cut costs and focus mainly on streaming and theme parks.
Since his return, Disney has raised prices to both stream movies and shows on Disney+ and to visit Disney theme parks, but the stock has struggled. Shares have tumbled 58% from their record high.
The stock is down around 2% so far this year, leaving it on pace for its third consecutive yearly decline. If the shares end 2023 in the red, it would be the stock’s longest yearly losing streak since a five-year series of losses that ended in 2002.
The suspension of the dividend in 2020, the Hollywood actor and writer strikes, slower growth in subscribership to Disney+ than expected, and economic issues such as rising costs as a result of inflation have all weighed down the stock.
But if the past is prologue, a rebound could be on the way.
Write to Angela Palumbo at [email protected]
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