Disney (DIS) has grown its earnings-per-share at 14.0% a year over the last decade. Disney currently has a market cap near $200 billion, making it the 15th largest publicly traded United States based stock.

Despite its massive size, Disney’s growth days are far from over. This article examines the company’s current valuation and growth prospects for dividend growth investors.

Company Overview

Disney operates in 5 segments. Each segment’s percentage of total operating income generated for Disney in fiscal 2015 is shown below:

  • Media Networks earned 53% of operating income
  • Parks & Resorts earned 21% of operating income
  • Studio Entertainment earned 13% of operating income
  • Consumer Products earned 12% of operating income
  • Interactive earned 1% of operating income

    • Media Networks

    The Media Networks segment is Disney’s largest, by far.It generated over half of the company’s operating income in fiscal 2015. Disney divides its Media Networks segment into 2 business units:

  • Cable Networks
  • Broadcasting

    • The Cable Networks business unit generated 87% of the Media Network’s operating income.The Broadcasting segment was responsible for the other 13%.

    Disney’s cable networks include: ESPN (80% owned by Disney, ABC Family, Disney Channel, and A&E Television Network (50% owned by Disney).The A&E Television Network includes A&E, History Channel, and Lifetime.

    Disney’s Broadcasting business unit owns the following:

  • The ABC television network
  • 33% of Hulu
  • 50% of Fusion
  • 8 domestic television stations

    • The 8 domestic television stations Disney owns are located in:New York, Los Angeles, Chicago, Houston, Philadelphia, San Francisco, Raleigh-Durham, and Fresno

    Parks & Resorts

    Disney’s Parks & Resorts segment is its 2nd largest, responsible for 21% of operating income in fiscal 2015.The segment owns and operates the following:

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