Dividends and Disneyland reopens with virus controls

If you are similar to those in the north east, we have finally received warm weather on a constant basis and have a desire to live outdoors. Part of the outdoor experience with kids is going to an amusement park at least once during the summer. The closer you live, the more inviting is the season pass. With the virus all parks are closed, but there is hope for North American parks.

In an article by Sam McNeil of Reuters the Shanghai Disneyland reopened. In early May when the article was written, Disney was limiting visitors, requiring masks and checking everyone for their temperature. The good news for Disney was the opening was sold out, however that meant normal capacity is 80,000 people per day, Disney had cut that to 30% or 24.000 people.

If you look at the virus controls, the industry with the biggest effect is tourism and there are many people with jobs in tourism field. When you think of Disney – you might think of an entertainment juggernaut with movies – from Disney cartoons, pictures, Marvel movies, but they said its quarterly profit went down 91%. Tourism and the gathering of people helps make Disney money.

Linking to dividend paying stocks, we are all adjusting to the virus and it takes time but as investors it is important to continually ask how does your company make profits. Then you can go through different risk scenarios of can they continue through different cycles, if the answer is yes, the price of the shares will go up and down, but if profits are made and dividends paid you have to do little but ensure they are added to your account. There will be many companies not doing well in the summer, but with your dividends you can look for opportunities because somewhere there is always a bull market which you can take advantage of.

There are more questions than answers, till the next time – to raising questions.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s