When you buy a dividend paying company, your outlook should be for the long term and that means through different economic cycles. Ray Dalio of Bridgewater Associates among many people have You Tube videos about economic cycles and the fact is they exist. The key to knowing about economic cycles is trying not to put all your money at the peak and when there is a downturn. The idea is when the economy is not so good, but there are signs it is improving and ride the wave. How to know when the cycle turns without looking backwards is the tough part. The point is profitable long term companies invest and should be investing for the long term.

In an article by Brooks Barnes of the New York Times, Walt Disney Co’s CE Bob Iger announced Disney will spend up to $60 billion on theme parks and expansion of the cruise ships.

Josh D’Amaro, chief of Disney Parks. Experiences and Products said Disney owns 1,000 acres to develop on across on its existing parks.

In 2022, theme parks generated $10 billion in profit up from $2.2 billion a decade ago.

The $60 billion is double what Disney spent on parks and cruises in the past decade.

Disney is expanding parks and cruises, however its other divisions are not doing as well as in the past, ESPN has less viewers because fewer people have cable TV, this has meant costs to cable companies have gone up, advertising down and the cost to the big sports has gone up ie NFL, MLB, etc. What is good for the sports team is not necessarily good for ESPN.

In the movie industry, the movies which were released were not giant blockbusters, although the movie library has many potential stories to tell.

Disney+ streaming service is losing money, but Disney is hopeful 2024 will be a profitable year.

The good news at the theme parks, once someone arrives, spending per guest has risen 42% since 2019 partly on higher ticket prices, food, merchandise and hotel rooms.

In the Disney Cruise Line part of the company, the company added a new port on a Bahamian Island, in addition to the one private island they own. The company will have 8 ships in their fleet. (having gone on a cruise, it is an enjoyable one).

Linking to dividend paying stocks, on one hand there will economic forecasters suggesting rough seas are ahead and to play it safe. On the other hand, profitable companies need to look at 10 years down the line to ensure they will capture the growth in the economic cycles. For the companies you own what plans do they have? how much do they typically implement?

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