Is Carnival paying dividends?

[Cruisin 4 Ever]

Last year I bought 100 shares of Carnival.and was told they pay divide ds. With the pandemic I assumed they wouldn't be paid but I saw something online that showed dividends if 0.21 per share have been paid out each quarter since I bought them but I've received nothing. Does anyone know if and how dividends are paid?

[IntrepidFromDC]

Dividends were suspended until further notice.

[Badfinger]

They no longer pay a dividend.  A few months ago they reported having about $32B in debt.  Doubt they will start paying a dividend anytime soon.  Guess you will have to consider the OBC as your only dividend now!

[CruisingFromLA]

The last dividend that I received was on 3/13/20, right before the world went to (insert bad word here). I got 50 cents a share. I do not expect to receive any quarterly dividends for several years. But its all good, as I am redeeming $200 worth of stockholder obc this year alone.

Edited October 2, 2021 by CruisingFromLA

[vivian02]

Yes the only dividend at this time is OBC. Give it sometime and the dividend will return. I got lucky and bought my shares once Carnival started sailing again. Things will improve slowly over the next year. Buy Carnival on the dip. Tim 

[mexicobob]

I do not think Carnival will be able to pay a dividend for a long time considering the debt they owe. I bought 100 shares for the OBC and would buy more if it ever dropped to about $20 per share. 

[Brkintx]

Does anyone know if the 100 shares are bought in a restricted account, does that work? (E.g. HSA account, IRA, etc.?)

[IntrepidFromDC]

IRA, Roth IRA both yes.

[tidecat]

In addition to the billions of dollars in losses over the past 18 months, the stock has been heavily diluted. When Carnival is in a position to resume dividends, it may buy back stock instead.

 

For fiscal years 2018-2019, Carnival had positive operating cash flow of about $5.5 Billion each fiscal year. It will take 2-3 years of results like that to get the debt back down to where it was during fiscal 2018-2019. I'm thinking Fiscal 2023 might be the earliest chance at pre-pandemic cash flow, and even then it may take until 2026 before dividends/buy backs may occur.

[ontheweb]

8 hours ago, CruisingFromLA said:

The last dividend that I received was on 3/13/20, right before the world went to (insert bad word here). I got 50 cents a share. I do not expect to receive any quarterly dividends for several years. But its all good, as I am redeeming $200 worth of stockholder obc this year alone.

Yes the 50 cents a share dividend was nice 😊 It was 25 cents a share when we first bought the stock. Now it is zero, and I would not expect it to be anything more for quite awhile.😢

 

 

[Cruisin 4 Ever]

Thanks for the responses everyone. I bought my 100 shares last year for $12 a share and bought them primarily for OBC and because I love Carnival. I've never purchased shares before and assumed the dividends were cancelled because of the debt but just wanted to be sure I wasn't missing out lol

I will get my first OBC this spring and its 250 because it's a 14 nighter😀

[ontheweb]

2 hours ago, Cruisin 4 Ever said:

Thanks for the responses everyone. I bought my 100 shares last year for $12 a share and bought them primarily for OBC and because I love Carnival. I've never purchased shares before and assumed the dividends were cancelled because of the debt but just wanted to be sure I wasn't missing out lol

I will get my first OBC this spring and its 250 because it's a 14 nighter😀

Dividends are paid from profits. And it has been a long time since there have been any profits.

[ngrund]

Is there any limit on the shareholder OBC?

 

Far fetched scenario, but after I retire if I go on a cruise a month,  would they cut me off?😃

[Joe817]

8 minutes ago, ngrund said:

Is there any limit on the shareholder OBC?

 

Far fetched scenario, but after I retire if I go on a cruise a month,  would they cut me off?😃

Yes.

 

Carnival Corporation & plc is pleased to extend the following benefit to our shareholders:
NORTH AMERICA BRANDS
CONTINENTAL EUROPE BRANDS
UNITED KINGDOM BRANDS
AUSTRALIA BRANDS
Onboard credit per stateroom on sailings of 14 days or longer
US $250
€200
£150
A$250
Onboard credit per stateroom on sailings of 7 to 13 days
US $100
€ 75
£ 60
A$100
Onboard credit per stateroom on sailings of 6 days or less
US $ 50
€ 40
£ 30
A$ 50
The benefit is applicable on sailings through July 31, 2020 aboard the brands listed below. Certain restrictions apply. Applications to receive these benefits should be made at least three weeks prior to cruise departure date.

[Brkintx]

Anyone know if the OBC is available if you book casino free room offers?

[IntrepidFromDC]

1 hour ago, Brkintx said:

Anyone know if the OBC is available if you book casino free room offers?

It is.  My last cruise and next cruise were free balcony casino offers and I got the shareholder OBC for both cruises.

[RGEDad]

 

Two Issues: 

10 hours ago, Joe817 said:

11 hours ago, ngrund said:

Far fetched scenario, but after I retire if I go on a cruise a month,  would they cut me off?😃

Yes.

1. Not sure why you answered "Yes" as the benefit is per sailing, not over some period (ie a year) so they would not"Cut him off" - Something I do not understand??

10 hours ago, Joe817 said:

The benefit is applicable on sailings through July 31, 2020 aboard the brands listed below.

2. Your dates are wrong - current dates are:

The benefit is applicable on sailings through July 31, 2022 aboard the brands listed below. 

and

Reservations must be made by February 28, 2022

document :

 

 

Edited October 3, 2021 by RGEDad
Added Quotes

[ontheweb]

18 hours ago, Joe817 said:

Yes.

 

Carnival Corporation & plc is pleased to extend the following benefit to our shareholders:
NORTH AMERICA BRANDS
CONTINENTAL EUROPE BRANDS
UNITED KINGDOM BRANDS
AUSTRALIA BRANDS
Onboard credit per stateroom on sailings of 14 days or longer
US $250
€200
£150
A$250
Onboard credit per stateroom on sailings of 7 to 13 days
US $100
€ 75
£ 60
A$100
Onboard credit per stateroom on sailings of 6 days or less
US $ 50
€ 40
£ 30
A$ 50
The benefit is applicable on sailings through July 31, 2020 aboard the brands listed below. Certain restrictions apply. Applications to receive these benefits should be made at least three weeks prior to cruise departure date.

Well July 31, 2020 has certainly passed, and the benefit is still up and running.

 

Their board ROUTINELY passes an extension of the benefit every year. There is absolutely no reason not to as it is a marketing tool with very little cost to them.

[vwrestler171]

On 10/2/2021 at 12:33 PM, Brkintx said:

Anyone know if the OBC is available if you book casino free room offers?

 

On 10/2/2021 at 2:29 PM, IntrepidFromDC said:

It is.  My last cruise and next cruise were free balcony casino offers and I got the shareholder OBC for both cruises.

Technically they don't have to extend the benefit for discounted/free cruises.  I have been seeing many get denied.  Guess they are cracking down and some are getting through, while others are getting denied.

[IntrepidFromDC]

2 hours ago, vwrestler171 said:

Technically they don't have to extend the benefit for discounted/free cruises.  I have been seeing many get denied.  Guess they are cracking down and some are getting through, while others are getting denied.

I have been reminded of that for years, and I always note it in the shareholder OBC disclosure.  But we have sailed 18 times since 2013 and 16 have been "free" (just pay port fees and taxes) or deeply discounted casino offers and we've received the shareholder OBC every time we applied.  I agree this would be a place Carnival might think of shaving expenses, but I wonder why they don't just up the requirement of shares held for the OBC.  Make sure you're rewarding true believers in Carnival's business, not just people trying to buy 100 shares just for the OBC.

[vwrestler171]

8 minutes ago, IntrepidFromDC said:

I have been reminded of that for years, and I always note it in the shareholder OBC disclosure.  But we have sailed 18 times since 2013 and 16 have been "free" (just pay port fees and taxes) or deeply discounted casino offers and we've received the shareholder OBC every time we applied.  I agree this would be a place Carnival might think of shaving expenses, but I wonder why they don't just up the requirement of shares held for the OBC.  Make sure you're rewarding true believers in Carnival's business, not just people trying to buy 100 shares just for the OBC.

To an extent I agree with you. But where would you draw the line?  Why should someone spending thousands in the casino get their stocks treated any better than someone who cruises when they can afford it, but still owns stock in Carnival?  Almost another way of saying that the more wealthy people get more perks than the less wealthy people.

[IntrepidFromDC]

12 minutes ago, vwrestler171 said:

To an extent I agree with you. But where would you draw the line?  Why should someone spending thousands in the casino get their stocks treated any better than someone who cruises when they can afford it, but still owns stock in Carnival?  Almost another way of saying that the more wealthy people get more perks than the less wealthy people.

That's a valid alternative point.  Nevertheless, I'm more of an "idea guy" and leave it up to the beards and bean counters at Carnival to draw the line... as long as it's not more than 2,300 sh.  😁 🏴‍☠️

[Brkintx]

As a traveler, I can tell you that if I were paying for that room, Carnival would recieve less in actual revenue because I wouldn't gamble on that particular trip. My typical bankroll is higher than the cabin fare they're "giving me" - so count me amongst those who think the rule is a silly one. IMO, that room is paid for in full plus more, despite that it's paid on board rather than with the reservations department.

 

I'm fine with taking a paid for vacation, and I'm fine with cruising on a gaming offer (free balcony or higher with free play), but I'm not going to pay for the opportunity to gamble... 😉

 

Ultimately, CCL wants their stock purchased so the capitalization remains intact. A dollar in increased valuation nets millions of additional capital value. Demand drives value, and they can legitimately impact demand when their performance would otherwise drive it downward. The OBC policy is a function of this.

 

The only valid reason to invest in any company is that the potential return is stronger than the potential risk of your investment. It's "the potential" that is open for debate with most investments... 

 

As an investor, I've purchased CCL for one reason - I think it's a worthwhile investment that will appreciate in value when balanced against my net risk (which is certainly lowered by the OBC benefit potentially offseting my investment loss if performance continues as it has). My preference is that cruising returns and the demand increases the value in my shares - I'll take profit over risk mitigation any day. But until the profit is there, I'll hedge my bet with some OBC based risk reduction in the meantime. 

Edited October 5, 2021 by Brkintx

[Moviela]

Carnival could do a reverse split, say 1 for 2 and cut down the number of shares issued, and it would increase the value of a single share to about $50. This would mean they could still offer OBC for holders of 100 shares, but those who bought just 100 shares for OBC would be forced to purchase an additional 50 shares @$50 to receive the credit. 

[firefly333]

33 minutes ago, Moviela said:

Carnival could do a reverse split, say 1 for 2 and cut down the number of shares issued, and it would increase the value of a single share to about $50. This would mean they could still offer OBC for holders of 100 shares, but those who bought just 100 shares for OBC would be forced to purchase an additional 50 shares @$50 to receive the credit. 

Unlikely. If it was going to would have when it was below $10. Starting to recover now.