Coronavirus: Disney Suspending Dividend Payout for First Half of Fiscal Year

The Walt Disney Company is looking to keep its finances on track as it weathers the coronavirus storm.

Since the theme parks closed in early March, the company has lost roughly $1.6 billion.

As a way to counter the lost funds, Disney is suspending its dividend payout for the first half of the fiscal year.

Dividend are a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).

CFO Christine McCarthy said on the call the move would preserve $1.6 billion in cash assuming the dividend held constant at 88 cents per share, McCarthy said. Total operating income was $2.42 billion in the quarter, down from $3.82 billion, a 37% drop.

McCarthy said Disney would revisit and address the dividend again in the next six months once it is better able to assess the impact of the virus.

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