For the first time since 2020, Disney is planning to resume paying a dividend to shareholders as the media giant continues its turnaround amid historic industry shifts . “This continued robust free cash flow growth alongside our strong balance sheet will position us well to address our investment and shareholder return goals for the year and going forward,” Disney Interim CFO Kevin Lansberry said on the earnings call Wednesday night. “To that end, we will be recommending to the board that they declare a dividend by the end of this calendar year.” Disney halted its quarterly payout, last issued semiannually at 88 cents per share, in May 2020 at the peak of the Covid shutdowns. Activist investor Nelson Peltz’s Trian Fund Management, with $2.5 billion of Disney shares , has voiced his concerns about the elimination of dividends. The planned reinstatement of dividends could help satisfy Peltz to an extent as the activist investor considers his next move. Trian hasn’t made a public statement since it ended its last activist campaign against Disney in January. The fund had purposefully waited until earnings report before deciding whether it would launch a proxy fight to nominate new board members. “While this will be just the starting point, we do see ample opportunity to continue to increase shareholder returns in the future as our earnings and free cash flow grow in the form of increased dividends or share buybacks, and we look forward to sharing more as we move ahead,” Lansberry said on the call. Wall Street analysts welcomed the news of the dividend reinstatement. Bernstein said it made it “feel like the worst is over.” Morgan Stanley said it looks forward to such a move, noting that Disney also suggested a return to share repurchases. JPMorgan’s Disney analyst Philip Cusick said he expects the payout to be 40 cents per share annually. Disney on Wednesday posted quarterly earnings that topped expectations thanks in part to profit at ESPN+ and continued growth at theme parks. The company plans to continue to “aggressively manage” its cost base, increasing its cost-cutting measures by an additional $2 billion to a target of $7.5 billion. — CNBC’s Michael Bloom contributed reporting.