It is not at all complicated to build wealth through stocks if invested wisely. Odds are bound to favor you if you think wisely and invest in stocks that have long standing reputation, growth and some kind of competitive edge, like a brand name. Brand name plays an important role in generating a steadfast revenue growth for investors.
Below mentioned is a stock that has the capacity to keep generating revenue to its shareholders even after ten years.
Walt Disney Co. (NYSE:DIS): Walt Disney, one of the biggest movie makers and distributors, has long been consistent in generating growth revenue. Though the stock is now suffering 2% to 3% decline due to cord-cutting, it will not last for too long. Its shares are bound to bounce back.
For almost 100 years, Walt Disney has produced and distributed numerous hit films, created some fabulous cartoon characters that will remain popular for generations to come. The company’s vast content library itself is a constant revenue generating machine. Characters from its hit movies feature in theme parks, drawing more crowds. They also feature on consumer products, creating more sales.
Since the beginning of the 2017, movies released by the Marvel Studios, a wholly owned subsidiary of Walt Disney has generated the company a substantial income. Films like Beauty and the Beast (2017), Star Wars: The Last Jedi (2017), Black Panther (2018), and Avengers: Infinity War (2018) have all generated at least $1 billion each. As long as the movie making giant continues to create this kind of magic at the box-office, its brand name will continue to flourish.
This isn’t to say that Walt Disney is flawless. Its media segment, which accounts for 41% of the company’s total revenue, isn’t going great. The number of cord-cutters has been on the rise which in turn has led to the decline in the company’s stock.
However, the management is already taking steps to transition Disney’s media channels into more of a digital future, by launching Disney app next year. With Walt Disney acquiring most of the Twenty First Century Fox’s (NASDAQ: FOXA) assets, it will also get 60% ownership of Hulu which can be helpful in boosting the to be launched app.
Finally, with Walt Disney stock trading at a modest 15 times forward earnings multiple, there has never been a great time to buy this stock at such a cheap price. For all those long-term investors who can buy and hold the stock for the next ten years, this could be the deal.