Carnival Stock

With the three new ships that carry ~4,000 passengers being unleashed three years in a row, and Carnival's top and bottom-line revenue and income growth over the past four years, combined with the healthy dividend and low P/E ratio, I have been monitoring Carnival stock for a while. Being down from ~$70 to ~$58, and not finding anything other than increased fuel prices to justify the decline, I was about to pull the trigger and buy a couple hundred shares. Then I read on another recent post that Carnival shareholders get $100 onboard credit for 7 day cruises. Buying tomorrow so I can get the $100 OBC for our 8/28 Horizon cruise. :D

other cruise lines stock is in a decline too, not a carnival specific thing. I think after the summer, the stocks will bounce back up.

Stocks go up and down. To cruise once a year probably would not think it worthwhile to own the stock.

My parents just bought 100 shares of CCL and will be getting at least $500 this year and I am still not sure they won't do a December cruise. They have two 2019 cruises already booked for another $500. Now the one possible downer is that last I checked the shareholder program page still hasn't been updated and says it is through 7-31-2018.

Bought and sold a few times. It's been good for plenty of OBC, but we cruise often.

My parents just bought 100 shares of CCL and will be getting at least $500 this year and I am still not sure they won't do a December cruise. They have two 2019 cruises already booked for another $500. Now the one possible downer is that last I checked the shareholder program page still hasn't been updated and says it is through 7-31-2018.

It’s extremely likely to be renewed.

We’ve had our shareholder benefit since 2011 and benefitted very nicely from it in addition to the doubling of our investment.

My stock is in my IRA portfolio--if you own stock as part of your retirement plan, 100 shares of CCL isn't a bad investment, and it's one of the few things in my IRA that I benefit from before retirement.

And Carnival pays a dividend on the stocks on about a quarterly cycle. Also, for Texas Wyldcat, the reason the stockholder page on line says it is good until 7-31-18 is that Carnival determines dividends in June and it will be published shortly. Been renewed every year since the early 2000s.

Stocks go up and down. To cruise once a year probably would not think it worthwhile to own the stock.

Agree. There are so many other stocks that do so much better that it makes the $100 OBC look like peanuts.

Look at MasterCard' date=' Costco and Amazon. $6000 of Amazon just 2.5 years is worth over $18k today. That is enough to pay for 3-4 entire cruises from the gains alone.

Plus...per Carnival..."This benefit is not transferable, cannot be exchanged for cash and, cannot be used for casino credits/charges and gratuities charged to your onboard account."

So that $100 would be used for either overpriced excursions, drinks, pictures or crap from the fun shops...given that stuff is marked up at least 50% from what you can buy it for "on shore", that $100 OBC is almost a joke IMO. But it is a great gimmick by Carnival to "reward" loyalty and and capture shareholders. To each their own I guess.

My parents just bought 100 shares of CCL and will be getting at least $500 this year and I am still not sure they won't do a December cruise. They have two 2019 cruises already booked for another $500. Now the one possible downer is that last I checked the shareholder program page still hasn't been updated and says it is through 7-31-2018.

You mean 2019, right?

From carnival's website:

"Carnival Corporation & plc is pleased to extend the following benefit to our shareholders:

Onboard credit per stateroom on sailings of 14 days or longer US $250

Onboard credit per stateroom on sailings of 7 to 13 days US $100

Onboard credit per stateroom on sailings of 6 days or less US $ 50

The benefit is applicable on sailings through July 31, 2019"

Our OBC goes toward gratuities

The stock is good for OBC on all Carnival Corporation ships not just the Carnival line of ships. It has been good for us as part of our portfolio . I probably would not buy it just for the OBC but that certainly doesn't hurt!!

We are getting $250 for our 15 day Panama Canal cruise on Princess and another $100 for our yearly spring cruise on Carnival.

It all adds up!!

Stocks go up and down. To cruise once a year probably would not think it worthwhile to own the stock.

CCL is a very solid stock, OBC or not, someone comparing it to Amazon's growth is a misrepresented. We bought it at $35 as a stock and have some travel mutual funds which have CCL as on of their major players. The economy and the travel industry are thriving right now. Oil prices are always a glitch in airlines and cruise stocks. CCL is going to do just fine.

Been tracking it too, figure I have a few months to hold out and still get the OBC. Waiting on some relatively certain events to happen before I pull the trigger. Only risk in that strategy is Trump doing something that sends the market as a whole up simultaneously. Lots of geopolitical things happen in the summer while Congress is on break.

Agree. There are so many other stocks that do so much better that it makes the $100 OBC look like peanuts.

 

Look at MasterCard, Costco and Amazon. $6000 of Amazon just 2.5 years is worth over $18k today. That is enough to pay for 3-4 entire cruises from the gains alone.

 

Plus...per Carnival..."This benefit is not transferable, cannot be exchanged for cash and, cannot be used for casino credits/charges and gratuities charged to your onboard account."

So that $100 would be used for either overpriced excursions, drinks, pictures or crap from the fun shops...given that stuff is marked up at least 50% from what you can buy it for "on shore", that $100 OBC is almost a joke IMO. But it is a great gimmick by Carnival to "reward" loyalty and and capture shareholders. To each their own I guess.

Hi

I guess you haven't thought of it, but most people who have invested in Carnival stock have also made other investments. Some do better and some do worse, that's how investing works if you diversify. If you are only trying to hit a home run, you might as well stick with the casino.

My OBC has been used to pay daily gratuities as well as casino charges in the slot machines. I don't drink more than a few drinks for a week long cruise and I don't buy things in the shops anymore. (maybe once in a while the steak house)

While I agree that you shouldn't buy Carnival shares just because you will go on a cruise once a year, you could very well consider buying the shares if it is a product that you like and want to support. Some of the best investors suggest buying what you know and like.

$100 a year doesn't seem like much, but if you cruise 2-3-4 times a year over 20-30yrs., that's a lot of after tax money. Combined with a 3%+ dividend, by the time you retire, you could have ignored it's performance and it would be all profit.

Of course getting your financial investment advise on an internet cruise forum site, probably about as bad as getting your medical advise here. However, if you do your research, you will see that all the cruise lines have done fine over time. (so far) Always remember past performance is not indicative of future results.

CCL is a very solid stock, OBC or not, someone comparing it to Amazon's growth is a misrepresented. We bought it at $35 as a stock and have some travel mutual funds which have CCL as on of their major players. The economy and the travel industry are thriving right now. Oil prices are always a glitch in airlines and cruise stocks. CCL is going to do just fine.

The biggest problem with the OBC is that you are required to book a cruise...ie spend hundreds or thousands in order to get it. Investors consider it as an added bonus "dividend". No dividend I receive from any of my stock requires a purchase of hundreds or thousands of dollars. And as I stated before, the value is greatly inflated when you look at what you can buy with the OBC.

And yeah Amazon is an extreme example....but there are so many other good stocks out there that outperform the cruise industry. I suggest everybody do their homework before buying CCL or any stock. It is important. Folks will research for hours or days before buying a depreciating item like a TV or Computer, but have no problem investing thousands based upon something an anonymous person writes on the internet. Scary.

Hi

 

While I agree that you shouldn't buy Carnival shares just because you will go on a cruise once a year, you could very well consider buying the shares if it is a product that you like and want to support. Some of the best investors suggest buying what you know and like.

 

$100 a year doesn't seem like much, but if you cruise 2-3-4 times a year over 20-30yrs., that's a lot of after tax money. Combined with a 3%+ dividend, by the time you retire, you could have ignored it's performance and it would be all profit.

You summarize some of the points I was making in my original post, which seem to have been ignored by some who zero in only on the OBC. The $100OBC is a small part of a package of factors that are positive, both quantitatively and qualitatively.

Let's not also forget that the generous dividend is taxed at only 15% for those of us in higher nominal tax brackets.

So that $100 would be used for either overpriced excursions, drinks, pictures or crap from the fun shops...given that stuff is marked up at least 50% from what you can buy it for "on shore", that $100 OBC is almost a joke IMO. But it is a great gimmick by Carnival to "reward" loyalty and and capture shareholders. To each their own I guess.

I agree that there is a lot of wastes of money on the boat. However, I am always spending at least $100 on the ship whether it is gratuities, food, drink, etc. The way I look at it, without the shares, I would be wasting $100. That $100 went into a stock investment that has traditionally grown, paid dividends.

Everyone has their opinion. Everyone buys what they see value in. Some people buy Cheers. I bought stock. To each their own.

Given that amazon barely edged Carnival in net income last year ($3B to $2.6B) I look at quantitative statistics like valuation and P/E and think amazon is overvalued on a relative measure. That said, it's obvious amazon will succeed in the future, but given their diversified business model they will not likely grow the share price like some other popular growth stocks.

Here’s the 2019 Shareholder’s Benefit Info. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Mjc0MjIzfENoaWxkSUQ9LTF8VHlwZT0z&t=1

My parents just bought 100 shares of CCL and will be getting at least $500 this year and I am still not sure they won't do a December cruise. They have two 2019 cruises already booked for another $500. Now the one possible downer is that last I checked the shareholder program page still hasn't been updated and says it is through 7-31-2018.

How are your parents getting $500 for two cruises? Are they 14 days or longer?

Dear naxer,

The IRA and/or ROTHJ are great tools to retire with. ROTH has many more benefits.

One are I did not see in this thread.

ReInvesting those dividends !

COMPOUNDING.

My stock is in my IRA portfolio--if you own stock as part of your retirement plan, 100 shares of CCL isn't a bad investment, and it's one of the few things in my IRA that I benefit from before retirement.

Dear naxer,

The IRA and/or ROTH are great tools to retire with. ROTH has many more benefits.

One are I did not see in this thread.

ReInvesting those dividends !

COMPOUNDING.

My stock is in my IRA portfolio--if you own stock as part of your retirement plan, 100 shares of CCL isn't a bad investment, and it's one of the few things in my IRA that I benefit from before retirement.

Agree. There are so many other stocks that do so much better that it makes the $100 OBC look like peanuts.

 

Look at MasterCard, Costco and Amazon. $6000 of Amazon just 2.5 years is worth over $18k today. That is enough to pay for 3-4 entire cruises from the gains alone.

 

Plus...per Carnival..."This benefit is not transferable, cannot be exchanged for cash and, cannot be used for casino credits/charges and gratuities charged to your onboard account."

So that $100 would be used for either overpriced excursions, drinks, pictures or crap from the fun shops...given that stuff is marked up at least 50% from what you can buy it for "on shore", that $100 OBC is almost a joke IMO. But it is a great gimmick by Carnival to "reward" loyalty and and capture shareholders. To each their own I guess.

You can go into the casino any time it is open and put money on you casino account from your sign and sale account on a slot machine. You can then go to the casino cage and cash in that amount of money. You have just gotten you Stock OBC, Very simple.

Agree. There are so many other stocks that do so much better that it makes the $100 OBC look like peanuts.

 

Look at MasterCard, Costco and Amazon. $6000 of Amazon just 2.5 years is worth over $18k today. That is enough to pay for 3-4 entire cruises from the gains alone.

 

Plus...per Carnival..."This benefit is not transferable, cannot be exchanged for cash and, cannot be used for casino credits/charges and gratuities charged to your onboard account."

So that $100 would be used for either overpriced excursions, drinks, pictures or crap from the fun shops...given that stuff is marked up at least 50% from what you can buy it for "on shore", that $100 OBC is almost a joke IMO. But it is a great gimmick by Carnival to "reward" loyalty and and capture shareholders. To each their own I guess.

Your hindsight is amazingly accurate. Now please tells us specifically what stocks will show guaranteed huge growth over the next 5 years, Percentages and accurate numbers would be appreciated.