For better or worse, Disney (DIS) is one of those companies that people keep their eyes on. What will be Disney’s next big media move? How will the next Marvel Cinematic Universe movie net at the box office? How expensive will Disney park tickets get? And what is Disney stock going to do?
After suspending dividends on its stock in 2020, the company resumed paying a modest dividend in January 2024 and has gradually increase it since. In late 2025, Disney announced an increased annual dividend of $1.50 for 2026, paid out in two installments of $0.75. So what does this dividend increase mean for the stock, and should investors consider buying now?
Disney’s Dividend Increase
With Disney’s latest dividend increase, it has a dividend yield of 1.29%. Compared with companies like Verizon Communications, which pays dividends of 6.8%, Disney’s dividend isn’t enough to make or break any investment decisions.
“I don’t spend a lot of time worrying about their dividend. I’m sure that’s going to be fine, because Disney still makes plenty of money,” said Dean Lyulkin, CEO of private investment firm Cardiff.
Deon Strickland, Ph.D., financial advisor at Scholar Advising, pointed out that dividends aren’t as important as the signals they send to investors regarding the company’s strength. “Companies that pay dividends are signaling their quality,” he said. “If you increase your dividends, you are a ‘strong’ or ‘good’ firm, because the weaker firm can’t mimic that. A weaker firm can’t sustain that dividend.”
With this in mind, it’s important to consider factors besides dividends as you determine whether Disney is a good investment for your portfolio in 2026.
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Disney Stock by the Numbers
On Jan. 9, Disney stock closed at $115.88, up from its 52-week low of $80, but with significant room to grow from its all-time high of nearly $200.
According to TipRanks, Disney is a “Strong Buy” based on analyst coverage. It has an average price target of $137.75 and a high price target of $152. Zacks Investment Research called it a “Hold,” pointing out that valuation metrics suggest it may be undervalued.
Expert Thoughts
David Hoare, author at Value Investing Now, called Disney a “solid company,” pointing out that the entertainment sector of the U.S. GDP is roughly $1 trillion per year and Disney is a major player in that industry.
“The company has made dramatic improvements to its streaming services over the last five years,” Hoare said. “Even if visitation [at the parks] drops 10%, if there are no changes in costs for the parks element, Disney will still generate a profit from that segment and from the company as a whole.”
Not every investor agrees that Disney represents a good value right now.
“Obviously, Disney has some amazing franchises and great theme parks, and it’s a very well-run company,” Lyulkin said. “But if you’re an investor and you’re thinking about media, I don’t think that Disney is at the top of your list. As far as being an attractive investment, Disney is being outsmarted and outflanked by so many players today.”
Should You Buy Disney Stock in 2026?
If recent performance is any indication, Disney lagged the S&P 500 in 2025. But if you’re looking for a stock to begin teaching your children about the stock market through a relatable property, or you want to invest in a company that resonates with your family and lifestyle, Disney is priced at a good value to buy and hold right now.
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This article originally appeared on GOBankingRates.com: Disney Rewards Investors in 2026 — Should You Buy Disney Stock Now?
