How To Buy Disney Stock

If you’re a fan of “The Mandalorian,” or if you’re an expert on theme parks, you may want to consider buying Disney stock. Disney is a popular investment option because of its vast variety of commercial activities. If you’re interested in learning how to buy Disney stock and if it’s a good investment for you, keep reading.

Disney Overview

A lot more goes on behind the scenes at the Walt Disney Company than just theme parks.
Disney, which began in the 1920s as a cartoon studio and the birthplace of Mickey Mouse, has grown into a giant entertainment conglomerate employing more than 223,000 people.
A number of distinct business units operate under the Disney umbrella these days, including:

  • FX, National Geographic, and ABC News are just some of the networks owned by Time Warner. There’s also the Disney Channel, of course.
  • One of its subsidiaries is ESPN, which is responsible for bringing viewers live sports content.
  • Pixar, Lucasfilm, and Marvel are all part of Disney’s filmmaking arsenal, which covers everything from live-action films to animated features.
  • Three additional ships are slated to join the Disney Cruise Line in the next several years, bringing the total number of ships in service to four.
  • Resorts: Disneyland in California and Walt Disney World in Florida are Disney’s two biggest U.S. theme parks. Europe and Asia are also home to theme parks.
  • The Disney Store has over 330 locations across the world, as well as an online presence.
  • Hulu, Hotstar, and ESPN+ are all owned by Disney in addition to their own streaming service, Disney+.
  • A Disney Visa Card and a Disney Premier Visa Card are now available thanks to a partnership with Chase.

Ticket sales, subscriptions to streaming services, and licensing of Disney’s iconic characters are just a few of the various ways the company generates cash.

About Disney stock

The NYSE trades the stock under the ticker code DIS, which stands for Dish Network. To put it another way, the COVID-19 epidemic has caused significant harm to Disney’s industries, notably its theme parks and cruise lines, and the firm reported a $4.72 billion loss for the second quarter of 2020.

Because of this, investors have always considered Disney’s common stock to be one of the safest investments in the market because of its strong financial position and lengthy history of success. Contrary to popular belief, investors in blue-chip stocks believe in the company’s leadership and its capacity to deliver high-quality products. If you’re thinking about investing in Disney stock, you’ll need a lot of money. The price of Disney stock has fluctuated between $85.98 and $179.12 during the last 52 weeks (as of January 6, 2021).

If you’re looking to buy Disney stock, you’re going to have to pay for it. The stock price of Disney has climbed by 46 percent during the last three years. However, this does not imply that investing in Disney is a sound decision. It’s impossible to predict how the stock market will perform in the future based on the company’s historical performance, especially when the market is volatile. In the stock market, there is always the possibility of losing money.

How to buy Disney stock: Ways

To invest in Disney, you have three options: You may buy shares in the company through one of the following:

Buy shares directly from Disney

The Walt Disney Corporation Investment Plan allows you to buy stock directly from the company rather than via a brokerage firm. It’s even possible to buy stock online.

Fill out a registration form and make a $200 investment or approve a minimum of four $50 recurring contributions to get started with the stock buying plan. The shareholder website allows you to acquire or sell additional shares of stock. Ordering shares on the market is expensive, and so are the costs for selling your shares once you’ve bought them.

Programs that allow customers to make purchases directly from the retailer have certain advantages. It eliminates the brokerage business that traditionally serves as a middleman between investors and firms, decreasing the amount of fees and charges you could otherwise pay.

It’s possible, though, that this is a more expensive option to begin investing, as account opening fees and other expenses are common. Because you’re buying individual shares in a single firm, it’s more difficult to diversify your portfolio.

Open a brokerage account

Investment through a brokerage account instead of directly acquiring stock from the firm is an option if you want to invest in many stocks. Brokerage accounts allow you to invest in a wide variety of products, such as stocks, bonds, ETFs, and mutual funds. As a result, brokerage accounts are likely to have cheaper costs and more order types than investing directly via Disney.

It is possible to make regular investments and acquire shares in firms such as Disney when you register a brokerage account. Fidelity, Vanguard, and Merrill Edge are just a few examples of brokerage firms you may be acquainted with. In order to make a stock purchase, you’ll need to make a deposit into your brokerage account from a checking or savings account. You then make a request to buy Disney shares and describe the amount of money you’d want to invest in the company.

Even if you have a brokerage account, you may have to pay fees and charges, which might reduce your earnings. Beginner investors may find it difficult to understand and manage these markets, and they often need sizable initial commitments. Before creating an account with a brokerage firm, take into account their investment minimums and trading costs.

Buy fractional shares

Disney stock can be purchased in fractional shares for beginning investors who don’t have a large amount of money to invest at the start of their career. Investing the conventional way necessitates a minimum initial investment equal to the whole share price. If you want to invest in high-priced equities like Disney, Apple, or Tesla, you may need to have hundreds or thousands of dollars on hand.

In contrast, with fractional shares, you may invest by purchasing a fraction of a share. If you just have $5 to invest, you may buy fractional shares, which are chunks of individual shares.
To acquire fractional shares, you’ll need an account with a brokerage that lets you do just that. Among the choices are:

  • Stash. You may start investing with as little as $1 in a Stash account. Monthly fees for these accounts range from $1 to $9. 1,2
  • Free account and fractional share purchases are available through the M1 Finance platform.
  • More than 5,000 stocks and ETFs are available for purchase in fractional shares through Robinhood.

Instead of needing to wait until you’ve saved up enough money to buy a whole share, these firms make it simple to invest right now. Additionally, you may set up automatic weekly or monthly donations to keep buying fractional shares.

Pros and Cons

When it comes to financial performance and returns, Disney is a household name. However, not everyone should put their money into Disney. Consider these advantages and disadvantages before putting your money into something.

Pros

  • Historically, Disney’s stock has done well on the stock market as a blue-chip stock. Nevertheless, previous success does not ensure future success.
  • It’s rare to find a company that doesn’t have a narrow focus, like health care or the arts. The stock might lose value if the industry undergoes a dramatic transition. There are a number of businesses within Disney that can help it cope with economic shifts: theme parks and streaming services.
  • Cash and cash equivalents of $14 billion in Disney’s bank account help the company to weather business disruptions such as the COVID-19 pandemic.

Cons

  • In order to invest in Disney’s stock, you will need to fork out hundreds of dollars.
  • Investing in a single business increases your risk. To put it another way, you might lose money if Disney fails to fulfill expectations. In order to invest in Disney, you may want to consider diversifying your portfolio by putting money into other assets.
  • Conditions outside the control: For example, Disney’s stock price might be significantly influenced by factors beyond the company’s control, as demonstrated by the coronavirus epidemic. If eve comes to pass.

If you want to acquire and own Disney stock for the long term, its comparatively high share price and stable performance may make sense. This strategy may not be the best if your goal is to generate money quickly. While Disney is a great firm to invest in, you may be better suited investing in an index fund. Disney and other significant firms like Amazon, Facebook, and Visa are included in indices like the S&P 500 Index (SPX).

Investing in index funds allows you to diversify your portfolio by investing in a large number of firms at once. Because of the other firms in the portfolio, if the stock price of one of them drops, your investment might be protected. An index fund is a fantastic choice for investors who like to be more hands-off, as it will follow an index rather than asking you to purchase and sell individual equities.

Spend some time planning your financial future before making an investment in an index fund or Disney stock. An expert financial adviser can help you determine if an investment is the best match for your financial situation.

Bottom line

Disney is a well-known brand with a strong track record of stock market success. Disney stock, on the other hand, may not be a good fit for you. We can’t provide you investment advice since we aren’t financial consultants and don’t know anything about your specific financial position. Consult with an investment professional instead to learn more about your alternatives. Ask your advisor if one of these methods of purchasing Disney stock appeals to you.

About the author: David Krug is the CEO & President of bankovia. He’s a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he’s not reading about cryptocurrencies, he’s researching the latest personal finance software.