Disney is a long-time blue chip that has been expanding its entertainment reach. Here are the steps for how to invest in Disney stock with as little as $100.
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Contents
Introduction – Why Invest in Disney?
Disney went public on the New York Stock Exchange in 1957. The direct-to-consumer entertainment empire has been a core blue chip stock in many portfolios and index funds for a long time. Disney was one of the major sufferers from the COVID crash in early 2020 when they had to close their parks and suspend their cruises. Thankfully, the stock has since fully recovered, and then some. The stock also jumped on the recent mid-November news from from Pfizer regarding their potential vaccine candidate. As their parks have been opening up again, Disney has reportedly been doing a great job of vigorously enforcing their COVID protocols in terms of masks and distancing.
Disney has been expanding more into media in recent years, their most recent initiative being the Disney+ streaming service, including their exclusive rights for the Broadway hit “Hamilton,” which drove a major increase in subscribers. This diversification has served them well during 2020 as more people are stuck at home. Other recent drivers of Disney+ downloads have been Mulan and The Mandalorian. It’s almost certain that Disney’s streaming products will continue to grow in the coming years.
Disney has come a long way since its 1923 cartoon beginnings, and is still incorporating Mickey Mouse and the like across its offerings. Thankfully, the company was already on strong footing before the pandemic, with some of the strongest branding in existence, and Disney+ has grown faster than expected. Disney is able to leverage the fact that they own most of the content provided on their own streaming service, creating a more cohesive customer experience.
Remember too that Disney’s parks will eventually fully reopen, so its long-term earnings potential remains strong, especially since Disney’s loyal fanbase is likely eager to return to the parks as soon as they reopen. I think the bullish case for the blue chip stock is still solid. Keep in mind Disney owns Star Wars, Pixar, ESPN, ABC, Hulu, and Marvel, just to name a few, and most of Disney’s titles end up becoming huge, long-term franchises. Its vast content distribution network adds fuel to that long-standing flame.
Going back to 1986, Disney stock has far outpaced the broader market:
How to Buy Disney Stock
First, you’ll need an account with a stock broker if you don’t already have one. This is an online platform through which you can buy and sell stocks. My choice is M1 Finance. M1 has zero fees and zero trade commissions, and offers automatic rebalancing, fractional shares, and a sleek, user-friendly interface and mobile app. I wrote a comprehensive review of M1 Finance here.
At the time of writing, a single share of Disney stock is around $150. Fractional shares allow you to use M1’s account minimum deposit ($100) to buy roughly 1.5 shares of Disney, allowing every penny to go to work for you. After the initial $100 deposit when opening a new account, you can buy new fractional shares of stock in the future whenever your cash balance reaches at least $25, allowing your position to grow with more fractional shares as your stock position grows or as you deposit more cash into your account. This makes the compounding happen faster, allowing your investments to grow more quickly.
Opening an account with a brokerage only takes about 10 minutes. After that you can connect your bank account to deposit money into your investment account. Then just type in what’s called the ticker symbol – the unique identifying abbreviation for the stock – for Disney (DIS) and place the buy order with just a few clicks. It’s that simple! You can obviously buy Disney alongside other stocks in your portfolio to diversify, or just invest entirely in Disney if you want to.
Assess how holding Disney stock fits inside your larger portfolio. If your portfolio is lacking media and entertainment stocks, then Disney can be a great addition.
How To Invest in Disney Stock – Quick Steps
To recap:
- Sign up for a new account with an online brokerage like M1 Finance.
- Connect your bank and fund your brokerage account.
- Enter the ticker symbol – DIS – or the company name to locate the stock.
- Place the buy order. You’re done! You can now call yourself a Disney shareholder.
Disclaimer: While I love diving into investing-related data and playing around with backtests, I am in no way a certified expert. I have no formal financial education. I am not a financial advisor, portfolio manager, or accountant. This is not financial advice, investing advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. Do your own due diligence. Past performance does not guarantee future returns. Read my lengthier disclaimer here.
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