How to Buy Disney (DIS) Stock

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• You can buy Disney stock by opening a brokerage account or by trading stock directly through Computershare.
• It’s a good idea to research the company’s financials before adding stocks to your portfolio.
• After you’ve bought a piece of Disney, you need to develop an investment strategy in order to generate returns.

Disney stock rose in late November 2022 after former chief executive officer Bob Iger announced his return as CEO. Though the stock was down at the start of 2022 (like many others), the news sent the stock price up almost 10%.

If you are interested in getting a piece of the entertainment business, you can buy shares directly or open an account with an investment platform or broker. Another option is hiring a financial advisor, but we mainly focus on ways to invest in Disney for those who prefer the do-it-yourself approach.

1. Set up a brokerage account

If you do not want the help of a financial advisor or investment firm, you must use a brokerage account to trade Disney stock. Broker accounts allow you to invest in a variety of asset types, including stocks, ETFs, options, mutual funds, bonds, and more.

And you can invest with multiple account types. These include individual and joint brokerage accounts, IRAs, margin accounts, trusts, custody accounts and more. The most competitive brokers also offer things like fractional shares, commission-free trading, easily accessible customer support, and resources for investor education and market analysis.

But stocks aren’t the only way to get into Disney. You can also invest in Disney through various funds, explains Dominique Broadway, personal finance expert and founder of Finances Demystified.

“It’s part of the S&P 500, so you can access it in the SPY fund or the Vanguard Total Stock Market Index fund,” she said. Many big funds, she added, also have Disney stock in them, so you can still get exposure without having all your money in the stock.

But that doesn’t mean that one approach (i.e. investing in individual stocks or using funds) is better than the other. According to Broadway, both can be good, but it really just depends on your personal risk tolerance and investment goals.

Buy shares directly

Provided you’re tuned into the self-directed trading route, you can also buy Disney stock directly through The Walt Disney Company’s investment plan. To set up an account, you must either make an initial investment of $250 or deposit at least $50 each month.

Once you sign up for the plan, you get access to an online account where you can buy and sell shares. It is available through Computershare and automatically reinvests any cash dividends back into additional Disney stock.

2. Research Disney’s finances

Before adding Disney to your portfolio, it’s a good idea to evaluate the company holistically. You can make your decision using multiple resources, including historical and current stock performance data, income statements, balance sheets, quarterly company earnings reports, research reports, and expert analysis.

Additionally, it also helps to keep an eye on Disney’s performance relative to the entertainment sector as a whole, and you should be aware of economic factors (such as rising or falling interest rates) that may directly impact the stock’s performance.

Despite being a blue-chip stock, Disney has proven to be volatile, so it’s not a good idea for those nearing retirement or for investors who can’t stand frequent price movements.

3. Decide how much you want to invest and place an order

Initial investment amounts will vary for investors based on factors such as disposable income, risk tolerance, time horizon and investment goals. In addition, your target returns also affect how much you invest in a security.

But no matter how much you want to invest, it’s a good idea to set up a solid emergency fund before you start investing. Emergency funds cover three to six months of living expenses and can be a great lifeline when the unexpected happens in life.

After selecting an investment amount, you must select an order type before purchasing the asset. Order types give you control over the final price at which your order will be filled. There are generally four types:

• Market organization: When you choose this order type, the broker executes the trade immediately. In other words, you get the stock price that the broker picks.
• Limit order: These orders allow you to specify a limit price for the stock(s) you are tracking. This means that your broker will only fill the order at this price limit or better. If the platform cannot meet the limit you specified, the order will not be executed/completed.
• Stop order: With stop orders or stop-loss orders, you instruct the broker not to buy stocks until they reach a certain price. For example, when Disney hits a price you set, the order becomes a market order and your broker fills it immediately.
• Stop Limit Order: As with stop orders, the stop price concept is the same for stop limit orders. The difference is that once the stock value of the investment reaches your set price, your order becomes a limit order. This means that the order will only be filled at that price or better.

After your purchase, the next step is to develop an investment strategy that will help you build wealth and achieve your goals.

4. Review your purchase and monitor your investment

When it comes to reviewing the performance of your investments, you don’t necessarily have to do it every minute, but it’s crucial that you monitor your stocks regularly as you create and implement a plan to increase value.

Investing isn’t black and white, however, so you can certainly build a portfolio that uses a mix of both strategies. For example, you might decide to use dollar cost average for Disney while investing a lump sum in a fund and relying on buy-and-hold.

And it’s totally understandable if you’re hesitant to get started, or if you’re unsure whether to use stocks or funds.

“I’m definitely more of a stocks person because I love seeing the higher returns that stocks can offer,” Broadway says. If you’re not necessarily very concerned, she added, with super high returns, or if you’d much rather dig into Disney without seeing it, then investing in mutual funds might be the way to go.

However, if you are unsure about which approach to take, you can consult a financial advisor or set up an account with a robo-advisor.

How to sell Disney stock

The process for selling a stock is similar to buying a stock. You must click on the “Trade” section of your investment platform’s website or mobile app. After this step, you can generally sell either an exact dollar amount or a number of shares.

But you will still be responsible for capital gains taxes if your investment has produced returns. If you sell Disney within a year of purchase, you will incur short-term capital gains taxes. If you hold the stock for a year or more and earn returns, you’ll need to consider long-term capital gains taxes. Tax rates on short-term gains are typically higher than those on long-term gains.

The final result

If you wish to buy Disney stock without the help of a financial advisor, you must either set up a brokerage account or open an account through Disney’s Computershare program to buy stock directly. It’s also best to closely monitor the company’s finances and performance both before buying and while holding the stock.

Regardless of your chosen method, however, you must develop an investment strategy that complements your risk tolerance and time horizon, as well as helping you achieve your goals.

“The best time to start is now,” Broadway says. “If you’re trying to decide when to get in, just start now and get wet. Really start investing in companies you already like and love.”