Disney owns and operates a wide variety of media networks, including ABC, the Disney Channel, and ESPN. ABC’s successful programming efforts include many top series and shows including Grey’s Anatomy, Modern Family, Once Upon a Time, and Good Morning America. The Disney Channel was the top rated network in 2012 for kids between age 2-11, and ESPN is the world’s undisputed leader in sports programming. In addition, all of these offer excellent advertising opportunities for Disney’s movie releases.
Disney’s parks and resorts segment includes the The Walt Disney Company (NYSE:DIS) World Resort in Orlando, Florida, the Disneyland Resort in Anaheim, California, and Aulani, a Disney Resort and Spa, which is an oceanfront property in Oahu, Hawaii. These resorts provide Disney with a wide variety of revenue resources including admission costs, toy sales, hotels, and recreational facilities such as golf courses.
Disney continues to successfully expand in international markets. There are currently 108 Disney Channels around the world available in 34 languages. Also, Disney owns interests in several international properties, such as the Hong Kong Disneyland and Disneyland Paris.
Disney’s sales have increased from $27.1 billion to $42.3 billion over the last decade and earnings have increased from $1.3 billion to $5.7 billion. Disney’s dividend has grown by 260% over the last decade and currently yields 1.2%. With a payout ratio of only 18%, their dividend growth should continue well into the future.
The Walt Disney Company (NYSE:DIS) is indeed magical, and I consider it to be an excellent entertainment company to invest in for the long term.
Polaris Industries Inc. (NYSE:PII) is a global provider of recreational vehicles that include motorcycles, snowmobiles, ATVs, and electric vehicles.
Polaris’s wide range of high-quality recreational brands include the Ranger, RZR, and Sportsman ATV products, Victory and Indian Motorcycles, and Rush, Switchback, RMK, and Indy Snowmobiles. Polaris Industries Inc. (NYSE:PII) also sells commercial and defense ATV models. The recent acquisitions of AIXAM Mega and Global Electric Vehicles has enabled Polaris to become a player in the small electric vehicle market.
Polaris is the largest player in the recreational vehicle industry with 35% of total sales. Their closest competitor, Honda Motor Co Ltd (ADR) (NYSE:HMC), is the second largest with approximately 15%, which is impressive since their main focus is on cars and trucks. In addition, Honda Motor Co Ltd (ADR) (NYSE:HMC)’s businesses include generators and marine products. Even though I consider Honda to be an excellent investment opportunity due to its wide range of products, I believe that Polaris will continue to be the top dog in the recreational vehicle industry.
Polaris has been hitting on all cylinders lately due to its powerful brands and successful acquisitions. 2012 revenues increased by 21% and 2012 earnings increased by 37%. Polaris’s dividend growth has been impressive. Its dividend currently yields 1.8% and with a payout ratio of only 32%, I believe that Polaris will continue its impressive dividend growth.