Disney stocks can be purchased as a gift for a child or baby. The majority of kids will have to open a custodial account. A dominant force in theme parks and movie theaters alike, Disney is one of the biggest and most well-known brands in the world. Knowing how to buy Disney stocks is important if you are interested in investing in Disney.
Disney Parks, Experiences, and Products (which includes Disneyland resorts), Disney Media & Entertainment Distribution (which includes Disney+ and ESPN+), and four content groups make up The Walt Disney Company (DIS), a global provider of entertainment.
The following information will help you buy and sell Walt Disney stocks.
How to Buy Stocks in Disney
You can buy Disney stocks in two ways; A direct stock purchase plan is an additional option for investors. By enrolling in this method, you can buy Disney stocks directly from the company after completing an application. To enroll, you must open an account with a minimum initial investment of $250 or consent to monthly withdrawals of $50 or more for a minimum of five consecutive months. Once you join as a shareholder, a joint venture with Computershare enables you to purchase and sell shares.
The process of purchasing shares involves several steps after you’ve chosen which business to invest in.
#1. Open a Brokerage Account
To purchase stocks from Disney, regardless of your trading experience or familiarity with stock market investments, you must create an account with a licensed brokerage. Consider the following before opening an account:
- Don’t lose sight of your long-term financial objectives.
- Be ready to endure the ups and downs of the stock market.
- Aim to minimize trading expenses
Online Disney stock purchases require the creation of a brokerage account. Although there are many platforms, the one that is best for you will depend on your needs and investing preferences. Take into account the following qualities when evaluating brokers:
- Fees: Brokers may charge you brokerage fees to carry out your transactions or offer specific services.
- Security: Select a reputable broker by confirming that it is fully authorized by state regulatory agencies, FINRA, and registered with the Securities and Exchange Commission (SEC);
- Trading resources: Vigorous investors may favor brokerage accounts with all the bells and whistles. Some brokers charge extra fees for access to additional data or fully customizable platforms with in-depth analytical tools. Avoid spending additional money on such additions if they are not necessary for your needs.
- Access to market data: To enable you to trade confidently with up-to-date data, look for a platform that gives you access to reliable market research and reporting tools;
- Trading in fractional shares enables buyers to purchase stocks or ETFs based on dollar amounts rather than share counts. This is beneficial for investors who want to put together a diversified portfolio but don’t have unlimited funds.
#2. Fund Your Brokerage Account
The next step is to fund your account after choosing a broker. Keep in mind that it occasionally takes up to three days for the money to arrive in your account. this is the second step when you want to buy Disney stocks.
#3. Carry Out Extensive Research
Visit the business’ website’s investor relations section to learn more about Walt Disney. To determine whether purchasing Disney stocks is the best investment choice for you, you can also look up other financial information about the company. Ensure that you are at ease with Disney’s performance and corporate objectives. Reviewing the company’s yearly reports and quarterly reports can help you comprehend the goals, prospects, rivals, and possible risks of the organization.
#4. Decide on Your Investing Strategy.
People typically invest in one of two ways: either as a one-time, large purchase or as a series of smaller, more regular payments over time.
The latter method makes use of a stock market strategy called “pound cost averaging,” which enables you to pay less per share on average over time in declining stock markets. Additionally, it allows investors to use their money in the market right away rather than having to wait to accumulate a lump sum.
#5. Establish Your Investment Budget.
You must decide how much money you want to invest after deciding that Disney stock is the best option for you. In the end, how much money you invest will depend on the stock price and how many shares you want to purchase. If a stock’s share price is too expensive for your budget, you might want to look into fractional shares. With fractional shares, you can buy stock in an amount that suits you financially, so you could end up with less than a full share, a full share, or more than a full share.
#6. Place Your Order and Buy Disney Stock
You can place an order after choosing how many shares or how much money you want to spend. Tell your advisor, if you have one, that you’d like to purchase Disney stocks and how much you have available to invest, and they’ll take care of it for you. Using a brokerage account is as easy as logging in and typing the ticker DIS into the search field.
Even though Disney is a reputable business with a solid track record, all investments carry some level of risk. Before investing, check your finances, and spread your money among a variety of companies in your portfolio. After purchasing the shares, many brokers let you add a “stop loss” to help you reduce your losses if the share price declines.
#7. Constantly Review Disney’s Performance
No matter how many stocks you have in your share portfolio or how many companies you own, it’s critical that you regularly, whether on a monthly, quarterly, or annual basis, assess how each one is doing. When you do this, you have the chance to evaluate performance and decide whether you need to make any adjustments to your holdings to maintain the status quo, buy additional stock, or sell existing shares.
You should occasionally check the performance of your investments, even blue-chip stocks like Disney. Comparing the performance of your DIS investment to that of a benchmark index, such as the S&P 500, is a useful way to determine how it stands with the rest of the market. Additionally, you can monitor its financial performance by looking at the same annual and quarterly reports that you used for your initial research.
Pros of Buying Disney Stocks
#1. Diversified Operations
Even though the company’s animation division is its most well-known division, it has since diversified into new markets like theme parks, merchandise, live entertainment, cruise lines, resorts, TV broadcasting, and streaming services.
#2. Solid Financial Records
Even during the coronavirus pandemic, the business has managed to stay afloat.
#3. Long-Term Growth Potential
With a long history of development and innovation, Disney is constantly growing and launching new goods and services.
Cons of Buying Disney Stocks
#1. Fierce Competition
Disney’s streaming services compete fiercely with major players in the market like Netflix and Amazon Prime Video. Additionally, Disney+ has seen a sharp increase in subscribers, but at the expense of enormous operating losses.
#2. No Dividends
At the moment, Disney does not distribute dividends to its shareholders. Due to the global COVID-19 pandemic that struck in 2020, dividend payments were halted.
How to Buy Disney Stocks as a Gift
#1. Research the Stock Market and Disney’s Stock
Decide whether you want to invest a specific number of shares or a specific sum of money in Disney stocks by researching its current value. Take into account any potential dangers or restrictions, such as any fees or minimum purchase requirements.
#2. Choose a Brokerage Platform
Choose a reputable brokerage site that enables stock purchases and gifts, like E*TRADE or Charles Schwab. Make sure the platform meets your needs by reviewing its fees and account requirements.
#3. Set up an Account
Set up a new account by following the instructions given by the brokerage platform. This might entail supplying financial and personal data as well as completing any required paperwork.
#4. Purchase the Disney Stocks
Using the trading tools provided by the brokerage platform after setting up your account, you can buy the desired quantity of Disney stocks.
#5. Transfer the Stock as a Gift
Transferring the stock to the recipient as a gift can be done by following the directions on the brokerage platform. This might entail giving the recipient’s financial and contact details as well as any required paperwork.
#6. Send the Gift
After the stocks have been transferred as a gift, you can deliver it to the recipient physically (through the mail, for example) or digitally (through the brokerage platform). Make sure to include any guidelines or records that the recipient will need to access and manage the stock.
How to Buy Disney Stock for a Child
The parents of the child must set up a custodial brokerage account before the child can purchase Disney stocks. The parents can then use the account to buy the stock, or you can use it to give a share of stock using your brokerage account.
#1. Guardians Can Open a Custodial
Creating a custodial account (UTMA/UGMA) is the most straightforward way to purchase Disney stocks for a child. An investment account that is under the parental control of a child is known as a custodial account. Legally, every contribution to the account belongs to the child, and the parent is in charge of managing the funds until the child reaches adulthood. It’s necessary to locate a brokerage that accepts UTMA/UGMA accounts to open a custodial account.
#2. Gift Stocks via Brokerage Accounts
Another option is to buy Disney stocks yourself and transfer them to the child’s custody account afterward to give them as a gift. Instead of a retirement account, a brokerage account must be used to buy Disney stocks for the child. You must personally own the Disney share before transferring it to make the transfer. You can gift shares to another party by following the instructions provided by your particular brokerage.
It can be a little more difficult to transfer stocks between brokerage accounts. The name of the child, the Depository Trust Company (DTC) number, the brokerage name, and the account number for the brokerage are all necessary to transfer Disney stocks
#3. Paper Certificate
Finally, you can buy a paper certificate proving the child is a legitimate shareholder. It’s crucial to remember that Disney no longer prints certificates on paper. Instead of an authentic piece of stock paper, what you are getting is a paper copy of a certificate. The child will nonetheless continue to be a legitimate shareholder of Disney stocks.
You should be aware that the price of a paper certificate is slightly higher than the price of the actual share. It’s because you’re paying for extra services like the paper certificate, shipping, and other processing costs.
Can You Buy Disney Stocks Directly From Disney?
The direct stock purchase plan is another option available to investors. By enrolling in this method, you can buy Disney stocks directly from the company after completing an application. To enroll, you must, however, open an account with a minimum deposit of $250 or approve monthly withdrawals of $50 for a minimum of five consecutive months. Once you join as a shareholder, a joint venture with Computershare enables you to purchase and sell shares.
How Much Does It Cost to Buy Stocks in Disney?
Disney’s stock is currently trading between $97 and $100 as of March 2023.
Investors can buy Disney shares in small increments, as is the case with many businesses today. If you’re thinking about doing this, check to see if your brokerage offers fractional shares. Following that, you should buy the portion of a single Disney share that fits within your price range.
Is Disney a Good Stock to Buy?
Depending on your risk tolerance, portfolio size, financial objectives, and market experience, you should decide whether Disney is a good stock to buy or an appropriate investment. Therefore, always do your research before trading. Please keep in mind that past results are no guarantee of future results.
How Do I Buy Disney Stocks?
To purchase Disney stocks, you must first register with an online trading platform, give some basic information, deposit money, and purchase the stocks. The entire process takes only a few minutes. to buy Disney stocks for a child, you must also open a custodial account.
What Is the First Price of the Stock for Disney?
Although Walt Disney Productions issued over-the-counter stock in 1940, the company’s initial public offering (IPO) wasn’t co-led by Goldman Sachs until November 12, 1957, when the price per share on the New York Stock Exchange was US$13.88.
Who Owns the Most Stocks in Disney?
The 138.8 million shares owned by Vanguard Group, or 7.6% of Disney’s outstanding shares, are part of their overall portfolio. This company is Disney’s largest institutional shareholder.
Conclusion
Direct stock investments can be interesting and, ideally, profitable ventures. Furthermore, it might make you eligible for shareholder benefits particular to the concerned business. However, investing directly in businesses can expose you to the turbulence of the stock market and unanticipated fluctuations in share prices. Purchasing a single stock, even one as large as Disney carries risk. Therefore, by diversifying your holdings, you can easily strike a balance between risk and reward in your investment portfolio.
Purchasing ETFs is among the simplest ways to accomplish this. Disney is therefore among the safer stocks to invest in over the long term and is a blue-chip company. Stocks are risky investments, though, so as always, do your independent research and have reliable risk management tools ready before you enter the market.
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