Let’s look at one last area that investors might find useful. We all know that past results don’t dictate future performance. With that being said, none of us can predict the future, but we can look at the past. Disney and News Corp have both experienced nine revenue increases in the past decade while Time Warner has seen eight. Disney has seen earnings per share increase nine times, while News Corp (NASDAQ:NWS) and Time Warner Inc. (NYSE:TWX) have each seen seven increases.
As with dividends, The Walt Disney Company (NYSE:DIS) has not seen a decrease, but six increases in the past decade. In 2007, News Corp experienced a decrease in dividends, one that took three years to rebound from. So, despite its seven increases, there have been four years since 2007 with less of a payout than was made in 2006. Time Warner started issuing dividends in 2005 and has increased them annually since then.
The Foolish bottom line
As with all investments, this comparison comes down to what you want. Are you looking strictly at valuation? Strictly at performance? Or a balance of several things? To me, Disney has great partnerships which provide a durable competitive advantage, a solid valuation (but not the best), and a far better performance than its competitors. Given the full picture, The Walt Disney Company (NYSE:DIS) appears to be in the best position for investors of my mindset. What do you think?
Tyler Wofford has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of The Walt Disney Company (NYSE:DIS).
The article Disney: Will Your Dreams Come True? originally appeared on Fool.com.
Tyler is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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