Disney Brings Back Dividend

And, Ulta Beauty sees bright future.

Today is Friday, December 1, 2023.

The Early Bird Index today is 61.53.

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Disney Brings Back Dividend

Amid a proxy fight with an activist investor, Disney (NYSE: DIS) is finally bringing back its dividend.

Details: Disney announced late Thursday that it will give a cash dividend of 30 cents per share on January 10, 2024, to shareholders of record at the close of business on December 11, 2023. This is Disney’s first dividend in three years.

Background: In 2020, Disney abandoned its dividend because of the pandemic and did not bring it back until now.

Big Picture: Disney faces a proxy fight with Trian Fund Management, led by activist investor Nelson Peltz. Trian and Peltz reportedly want to grab multiple seats on Disney’s board, according to CNBC on Thursday.

Definition: A proxy fight is a battle for proxy votes among shareholders. An activist investor buys a minority stake in a company to change the direction of that organization.

Stock Price: Disney is up just 4% this year. No wonder someone wants to change the company.

Final Thoughts: The dividend is good news for investors. Keep an eye on the proxy fight in the coming months.

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Notable Earnings Today: Genesco (NYSE: GCO), Bank of Montreal (NYSE: BMO).

Notable IPOs Today: Garden Stage Limited Ordinary Shares (Nasdaq: GSIW).

Notable Equity Crowdfunding Campaigns Ending Today: SKOG Haus Coffee & Tea (Mainvest), Espanita Tequila Company (Wefunder), EmotionTrac (Netcapital).

Notable Economic Events Today: S&P Global US Manufacturing PMI (9:45 a.m. ET), ISM Manufacturing PMI / Prices / Employment (10:00 a.m. ET), Fed Chair Powell speaks (11:00 a.m. ET), Atlanta Fed GDPNow (11:30 a.m. ET).

Ulta Beauty Sees Bright Future

Shares of Ulta Beauty (Nasdaq: ULTA) jumped by 11.98% in after-hours trading on Thursday after the beauty company posted strong financial earnings results.

Financials: Ulta Beauty reported earnings of $5.07 per share in the past quarter and revenue of $2.5 billion; both were better than expected.

Powering the Story: Net sales increased 6.4% in the past quarter. The company also increased its sales guidance for the remainder of the fiscal year. Basically, more sales are expected during the current holiday season.

Quote: “As we look to the future, the outlook for the Beauty category is bright, and I am confident Ulta Beauty has the right plans in place to delight our guests this holiday season.” - CEO Dave Kimbell.

Yes, But: During the past quarter, there was a 1.4% decrease in the average ticket. Also, the company battled higher supply chain costs.

Stock Price: Ulta Beauty is down about 9% this year but up 13% in the last 30 days.

Final Thoughts: Beauty products are considered “recession-proof” because even people with limited cash buy these supplies. Ulta Beauty is winning in this environment.

Super Micro Computer’s Proposed Stock Offering

Super Micro Computer (Nasdaq: SMCI) presented a proposed stock offering to sell 2.1 million shares of stock, causing the price to decline by 3.10% in after-hours trading on Thursday.

Final Thoughts: It’s been a good year for the tech company, with shares up 226%.

Trends to Watch

Dude, You’re Not Getting a Dell: Dell Earnings Top Estimates, but Posts Sales Miss on Weak PC Demand (Barron’s)

It’s About Time: Tesla Cybertruck deliveries begin after long delays (Fox Business)

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