Dow Jones Review: Disney

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Over the next couple of weeks, John and David will be revisiting some calls they made on individual stocks of the Dow. Today, they're checking out Disney. This company is up an impressive 31% in 2012 compared with a roughly 5% gain for the Dow average as a whole.

John and David gave Disney an outperform call earlier in 2012, thinking it would beat the market over the next five years. So far, the stock is out in front. The company continues to perform well as sales growth has been consistently in the mid-single digits. Management has been able to leverage that into faster earnings growth -- that's an impressive accomplishment considering the pressure from competitors like DreamWorks, News Corp., and CBS. David and John are sticking with their outperform call -- and it's not because of the 1.2% dividend yield. Disney has some great businesses and a solid management team. All of that will help the stock beat the market over the next five years.

Disney is a great company, but it doesn't pay a particularly high yield. If you'd like to learn about some outstanding income-generating stocks,The Motley Fool has compiled a special free report outlining our nine top dependable, dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

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David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Walt Disney. The Motley Fool owns shares of Walt Disney. Motley Fool newsletter services recommend DreamWorks Animation and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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