Dividend Yield: 1.2%
5-Year Average Dividend Increase: 17%
Disney (DIS) has been hitting on all cylinders of late, with revenue across its television, resorts and movie segments all ahead in 2013. On the movie side, Iron Man 3 was a hit, and The Lone Ranger — out this weekend — could be a blockbuster. On the resort side, Disney launched a new cruise ship earlier this year, and folks are still flocking to its theme parks helping to drive higher revenues and earnings.
Meanwhile, DIS shares are up 30% year-to-date, well ahead of the broader market. Disney’s dividend yield isn’t anything to scream about, but that’s in part because share appreciation has well outpaced the company’s 17% average increase over the past five years. Nonetheless, that payout isn’t going anywhere, and Disney can easily increase it thanks to $3 billion in free cash flow and another $4 billion in the bank. I personally bought shares in early April when the yield was only 1.4%, and I couldn’t be happier.