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The Walt Disney Company, a global entertainment leader, owns theme parks, movie studios, television networks, streaming services, and more. If you're interested in investing in Disney, here's a guide to help you:
How to Buy Disney (DIS) Stock
- Choose a Purchase Method
- Online Brokerage: Open an account with a brokerage to buy and sell Disney stock. Brokers provide flexibility to trade various stocks and manage orders. Look for brokers with low fees and account minimums using our list of recommended online brokers.
- Direct Stock Purchase Plan: Disney offers a plan allowing direct purchases. An initial investment of $200 is required, or monthly deductions of $50 for at least four months. Note that Disney's stock certificate program was discontinued in October 2021.
A brokerage account typically offers greater flexibility, enabling you to trade multiple stocks and manage orders more effectively. For retirement savings, consider a Registered Retirement Savings Plan (RRSP), which defers taxes until withdrawal. Taxable brokerage accounts are suitable for short-term goals or if RRSP contributions are maxed out, offering easy access to funds.
- Assess Your Investment Amount
- Budget: Ensure all essential expenses and savings goals are met before investing.
- Investment Strategy: Decide whether to invest a lump sum or use dollar-cost averaging, which spreads purchases over time to manage risk and average out costs.
- Portfolio: Evaluate how Disney fits into your overall investment strategy and diversify to mitigate risk.
- Place Your Order Log into your brokerage account and enter Disney’s ticker symbol (DIS) along with the number of shares or the amount you wish to invest. Choose between:
- Market Orders: Execute immediately at the current price.
- Limit Orders: Execute only when the stock reaches a specified price.
Disney trades on the New York Stock Exchange (NYSE), with trading hours from 9:30 a.m. to 4:00 p.m. ET, Monday through Friday. Some brokers offer pre-market and after-market trading.
- Consider Taxes and Currency Conversion Fees
- Taxes: U.S. dividends are subject to a 15% withholding tax unless held in an RRSP, which is tax-deferred.
- Currency Conversion Fees: Expect fees of 1% to 4% when converting Canadian dollars to U.S. dollars and vice versa. To reduce fees, consider using a U.S. dollar account or using Norbert’s Gambit, a strategy that involves converting Canadian shares to U.S. shares to avoid conversion fees.
- Selling Disney Stock To sell, log into your brokerage account, enter Disney’s ticker symbol, and specify the number of shares or dollar amount. Choose between market and limit orders based on your preferences.
Selling at a profit may incur capital gains taxes, so consult a tax professional to understand your tax obligations and explore ways to minimize them. Selling at a loss can offer tax benefits. Generally, Canadian investors pay capital gains taxes to the CRA, not the IRS, unless holding a significant stake in U.S. real estate corporations or earning over $5 million USD from U.S. investments, which could incur estate taxes.
Investing in Disney offers potential, but it's crucial to evaluate the stock’s fit in your overall strategy and understand the associated risks and costs.
