Walt Disney Co. (NYSE:DIS) raised its quarterly dividend by 34% following a string of record results at the media and entertainment company.
The increase--to 28.75 cents a share from 21.5 cents--will cost the company an extra $500 million a year and brings the dividend yield to 1.2%.
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Other media companies have similar yields, with Time Warner Inc. at about 1.5% and CBS Corp. at 1.1%.
Chief Executive Robert Iger noted the company logged the highest results in its history in the most recently completed fiscal year, continuing a recent trend.
Disney reported in November that its earnings rose 7.5% in the final quarter of its business year, driven by higher revenue at its studio entertainment and media networks divisions.
Results at Disney's film studio--and, to a lesser extent, its consumer-products division--have soared in recent quarters thanks to the blockbuster box-office and DVD/digital sales of "Frozen."
Within Disney's media networks, things have looked relatively strong. ABC has been the top-rated broadcast network so far this season. And ESPN's live sports content is increasingly valuable in a world where more networks may offer content directly to consumers via the Internet.