The Walt Disney Company is an iconic part of the American childhood experience. And its influence extends internationally and to all age groups. The legendary Walt Disney began producing his animated films in the early 1920s, and they’ve been fan-favorites ever since. As a fun way to start your children or grandchildren on the path to financial success, you can buy stock in Disney and gift it to them early on. Anyone can get a hold of Disney stock, though, and we go over how to do so below.
How to Buy Disney Stock
Through a partnership with Broadridge, a financial services company, you can buy Disney stock via The Walt Disney Company Investment Plan. This system is entirely online and requires new and current shareholders to have an account. Users can access their trade history, related tax forms, dividends and all other account information on this portal.
As far as specifics go, you should check out the plan prospectus on Disney’s website. Highlights from this paperwork include a $175 to $250,000 mandatory investment, a $20 one-time enrollment fee, a $20 sales fee, a $0.02 per share commission fee and a $5 debit/credit transfer fee. Disney has collectible stock certificates available for $50.
For those who want to do more than just buy equity in Disney, a brokerage is the way to go. These accounts afford investors direct access to the investment market, including Disney stocks. Brokerages typically offer online trades, broker-assisted trades and phone trades. The more service that’s required, the higher the fees. But if you feel comfortable trading online, your costs should stay under $10.
Once your investment funds are ready, there are a couple of different trade execution routes you can take. The first, and simplest, option is to complete a market order, which means you’re buying shares at their current price. Investors who don’t mind waiting, though, can institute a limit order. This will ensure that shares are not purchased until they fall beneath a specified price.
|Brokerage Firm||Trading Fees||Minimum||Best For|
|$0||$0||– Mobile/online traders |
– Self-sufficient investors
|TD Ameritrade |
|$6.95||$0||– Online traders |
– Customers who value support
|Merrill Edge |
|$6.95||$0||– Bank of America account holders |
– Customer support junkies
Buying stocks can be nerve-racking. As you might expect, many financial advisors have experience handling the execution of equity trades. Therefore, investing newbies may feel more comfortable consulting a financial advisor prior to physically making a purchase. Although this could be a slightly more expensive way of becoming a Disney shareholder, if it helps to ease your mind, it might be worth it.
Overview of Disney
You’ll find Disney’s footprint throughout the global entertainment business. In fact, it owns media networks, amusement parks, retail stores, film studios and more. Aside from Disney’s massive U.S. presence, the company operates in Asia, Europe, the Middle East, Africa and the Pacific. Take a look at some of its most notable holdings:
|The Walt Disney Company|
|Media||– ABC |
– Disney Channel
|Film Studios||– The Walt Disney Studios |
– Walt Disney Animation Studios
– Pixar Animation Studios
– Lucasfilm Ltd.
– Marvel Studios
– Disney Music Group
|Parks and Entertainment||– Walt Disney World |
– Disney Cruise Line
– Hong Kong Disneyland
– Disneyland Paris
– Shanghai Disney Resort
– Tokyo Disney Resort
|Retail||– Disney Store|
Disney’s Financial Profile
The general consensus across the market is that The Walt Disney Company (DIS) is a blue-chip investment. This title is given to large companies that have performed well financially for some time and show no signs of slowing. Blue-chip stocks are about as reliable an equity investment as there is, but they aren’t immune to dips. So although Disney is a staple in the entertainment sphere, don’t let your guard down. For reference, other blue-chips include Facebook and Walmart.
According to a report from Howmuch.net, a “$1,000 investment in Disney in 2007 would be worth $2,824” after 10 years. The report further details that this return outpaces that of Coca-Cola, Walmart, Microsoft and McDonald’s during the same time frame.
Should You Buy Disney Stock?
There is always an inherent risk when you buy into stocks, even with a blue-chip like Disney. Unlike exchange-traded funds (ETFs) and other index funds that track the overall performance of a collection of securities, the value of an equity is driven by the finances of a single company. This creates much more volatility, even with the consistent positive performance of a stock like Disney. For example, when Disney releases another entry in the Star Wars series, you may see the stock’s price jump. On the other hand, a Disney movie lull could shift things dramatically. If you’re at peace with this back-and-forth and expect to hold onto the shares for years, Disney appears to be a solid stock choice.
Anyone interested in investing with Disney directly through its online Broadridge-based platform will need to meet a few requirements. In addition to a $20 enrollment fee, you’ll need to invest at least $175. Those who cannot meet this minimum can instead sign up for a $50 recurring electronic investment. Furthermore, Disney institutes a $250,000 investment cap per calendar year. These stocks are open to non-U.S. investors.
Tips for Selecting Investments
- SmartAsset’s asset allocation calculator will give you the ability to make informed investment decisions. Ironing out a specific asset allocation forces you to build a balance of securities within your portfolio. This is done in accordance with your risk tolerance, time horizon and other investment factors.
- Financial advisors spend large portions of their day embedded in the investment market. So anyone looking to create an investment portfolio for the first time would be wise to talk to an advisor. The SmartAsset financial advisor matching tool sets you up with as many as three local advisors who fit your personal needs.
Photo credit: ©iStock.com/RinoCdZ, Yahoo Finance, ©iStock.com/danielvfung