I’m back with another Portfolio transaction update.  Compared to my last update, this one’s much more timely, as I only made the move yesterday.

I hadn’t acquired any additional shares in today’s stock since my initial purchase at the beginning of the pandemic.  It’s been a wild ride in price since then, too.

I’ve been wanting to grow this position since I established it, but its price shot up so quickly that the stock became quite overvalued in short order.

The stock doubled over the course of the first year I held it, but has been in decline since that time.  It now trades for less than I bought it 3 years ago.

While the stock still doesn’t scream discount, I’m OK adding a handful of shares to keep growing the position.

Let’s get some details on my most recent purchase…

 

The Walt Disney Co. (DIS)

This stock is the smallest of my Communications Services holdings, but hopefully that doesn’t last too long.

The collection of assets under the Disney umbrella is impressive.  From media and entertainment (including TV content, movie production & streaming services) to theme parks and cruise ships, there’s a lot Disney is offering.

Unfortunately, DIS has struggled to recover the earnings level it achieved prior to the pandemic.  It may take the company another 3 years to get there, too.

Still, progress is being made, but the company is certainly not firing on all cylinders yet.  When it does though, watch out.

On 5/26/23, I bought 5 shares of DIS at $88.3812, for a total of $441.91.

My DIS position grew by 20% with the buy, from 25 to 30 shares.  The purchase lowered my cost basis by less than $1… to $92.16/share.

The stock has a suspended dividend, so there’s currently no yield to speak of.  However, the company mentioned a plan to reinstate a modest dividend later this year, so we’ll see if that holds true.

Thus, for now my Portfolio’s annual forward dividend income remains the same, but perhaps that changes by year’s end if a dividend returns.

Even after this addition, DIS is my 9th smallest position out of 60 stocks.  Obviously, growing the position is in order if I wish to make DIS a more substantial Portfolio holding.

DIS sits behind VICI Properties (VICI) by a fair dollar amount in my Portfolio rankings, but just managed to outrank NextEra Energy (NEE) as a result of the buy.

With DIS being an existing holding, the number of stocks in my Portfolio remained at 60.

I’d consider adding more shares of DIS should its price decline further.  I think I might be more aggressive should the price dip below $80.

 

Summary

I purchased a handful of DIS shares just before the Memorial Day holiday weekend.  I bought 5 shares, allowing DIS to move up in my Portfolio rankings just a bit.

My DIS position has now grown to exactly 30 shares.  I was able to lower my cost basis some, too, to $92.16/share.

The purchase resulted in an investment of just under $442 into my Portfolio, but it failed to increase my forward dividend income since DIS currently has a suspended dividend.

The prospect of the dividend returning later this year and some projected 20%+ earnings growth over the next couple of years has gotten the corporate outlook looking brighter to me.

 

What do you make of DIS shares these days?  Do you need to see more evidence that a turnaround has taken hold?  Will the Disney magic ever be fully recaptured?  Please share in the comments!