#2: Walt Disney
Dividend Yield: 1.2%
Payout Ratio: 20%
YTD Performance: +33%
Walt Disney (NYSE:DIS) might be responsible for the happiest place on Earth, but the stock is a factory of dividend sadness.
2012 has been pretty kind to a number of travel and tourism-related stocks, such as Carnival (NYSE:CCL) and Six Flags (NYSE:SIX). Not to mention, it’s been a decent year for media stocks like CBS (NYSE:CBS) and Viacom (NASDAQ:VIAB).
Disney is both those things, plus so much more — and has nearly quintupled the returns of the Dow Jones. DIS set all-time highs earlier in October, and even after cooling off, shares still are up a whopping 33% year-to-date. Some of that run was powered by record quarterly earnings reported this summer.
And yet, despite all that, shareholders are seeing a meager 1.2% in dividends. What gives?
Well, Disney did improve its annual payout 50% at the end of last year, from 40 cents to 60 cents, and the end of this year isn’t too far away. Investors can go ahead and be optimistic about an increase to the payout, but even another 50% jack wouldn’t vault Disney out of the bottom five-yielding Dow stocks.
Walt Disney reports earnings after the bell Nov. 8.