Considering shareholder benefit?

I am just beginning to do research on this board and others about this benefit.

If you do purchase the shares, what did you all need for proof of ownership? Want to make sure that I request the right document if/when I purchase.

Our cruise is in December, so I think we have time....or does it take a while to get that proof from Carnival?

Thanks!

For the shareholder benefit you will need proof that you own 100 or more shares of Carnival Corp stock. The most common method is a recent copy of your stock account from your stock broker. It can be a copy of the actual stock certificates or a current stockholder report. I copy the last stock statement from my broker and send it to Princess along with the information about the upcoming cruise. Be sure to block out any account identification like account number or other stock owned. I submit it shortly after final payment but has to be at least 2 weeks before you sail and can be faxed or snail mailed but not emailed. There is a form to send in but it is not needed. All you need is your name, reservation ID, ship, date of sail and port of embarkation. The benefit is per cabin so that if more than one in the cabin owns 100 shares, only one gets the benefit. If both spouses each own 100 shares, only one can claim the benefit.

As above.

Plus the official form says, Shareholder proxy card, Current shares certificate, Current brokerage statement, or Nominee statement.

Fax to: (661)753-0180

or mail to: 24303 Town Center Drive, Santa Clarita, CA 91355

Whichever document you submit a copy of, make sure that it has a date on it that shows you owned the stock within 90 days of the cruise embarkation date.

I can only use my brokerage statement to show proof of ownership. To do so is a bit of work as I have to make a copy of two different pages then do a lot of blocking and blacking out in order to show only the pertinent information-----my name, date of statement, and name of brokerage company are on one page and the number of CCL shares owned is on another page.

It is a pain but it certainly is worth it.

You can find the submittal form online and print it out.

If you look here you will see the information required: http://www.carnivalcorp.com/phoenix.zhtml?c=140690&p=irol-sharebenefit

In addition Princess has a PDF cover sheet to use. Attached is the one I use. Note in the U.S. you can only send the request for the OBC by fax or USPS mail. Electronic requests are not accepted.

Carnival Shareholder Benefit Request Form PC.pdf

CCL Stock is sort of in the dull drums right now, off it's highs for the year .

May be a good time to buy in but don't base your investment strategy on what you read on CC, including this post. ;)

Make sure you feel it is a good investment for you. Carnival can change the stockholder benefit tomorrow.

What Royal Caribbean did was change their promotions so that you cannot double dip. So since the change the only time I've used the benefit is for cruises that I booked a month out in an inside cabin since that was the only cabin grade priced without an included package.

Just some basic math.

Yesterday's closing price was $45.94/share. The past annual dividends have been $1.40/share which would be $140 for 100 shares, and a rate of 3.05%. If you purchase a min. of 100 shares you are then eligible for the shareholder benefit. If you take just one 7 day cruise/year you would receive a $100 OBC. If you add that to the $140 dividend the return rate goes to 5.2%. More cruises/year will increase the return.

Of course stock values go up & down and you could loose or gain based on that. But as long as CCL still offers the shareholder benefit your return will be based on your actual purchase price. I purchased my stock for under $40/share so my percentage return is greater than the numbers stated above.

Going out on a limb here...I will guess that you are new to the idea of owning stock.

If this is true, you will need an account with a licensed stock broker. This can be at your bank, at a brick and mortar location of a large brokerage house or, more likely at one of several online brokers (Etrade, TDAmeritrade, Scottrade, etc).

Be aware that setting up and funding a brokerage account will take a little time. Unless you are a whiz at moving funds from place to place I would allow a week or so.

If you use an online agency, once the account is setup, you logon and enter a buy order for the stock (CCL) that you want to buy. Sufficient $$ needs to be available in the account to make the purchase. The actual transaction, once submitted, takes seconds to complete (market orders).

The online brokerages that I have seen all generate monthly account statements that you can download and use to submit for your OBC.

Lastly, it is unlikely that you will ever have CCL stock certificates in your hand. While they are available, it is far more common that your holdings will be held by your brokerage company.

Great responses so far! Thank you.

So, I can use these credits on Princess, Cunard, Costa, and Royal Caribbean but RC is limited to a cruise that I purchase that does not offer and OBC, right??

And, I need to obtain an ownership document that is dated within a 90 day window of my cruise departure, right?

Thanks again!

"So, I can use these credits on Princess, Cunard, Costa, and Royal Caribbean ", note that Royal Caribbean is NOT part of Carnival Cruise Lines.

Hello everyone.

Our next cruise will just kick us over the threshold of enough onboard credit to have paid for the 100 shares. Thanks Carnival.

Oh and there are dividends as well.

Safe journeys.

Great responses so far! Thank you.

So, I can use these credits on Princess, Cunard, Costa, and Royal Caribbean but RC is limited to a cruise that I purchase that does not offer and OBC, right??

 

And, I need to obtain an ownership document that is dated within a 90 day window of my cruise departure, right?

 

Thanks again!

Yes, but no....not RC or Celebrity or Azamara or Norwegian. Look up the Carnival family of cruise lines at http://www.carnivalcorp.com

Great responses so far! Thank you.

So, I can use these credits on Princess, Cunard, Costa, and Royal Caribbean but RC is limited to a cruise that I purchase that does not offer and OBC, right??

 

And, I need to obtain an ownership document that is dated within a 90 day window of my cruise departure, right?

 

Thanks again!

If you own stock in Royal Caribbean you can use that on their cruises to get a credit.

If you own stock in Carnival Corporation, you can get credit on any cruise line in the Carnival umbrella--Princess, Carnival, Cunard, Costa, P&O, Seaborn, HAL, etc.

The shareholder credit is wonderful, especially if your intent is to buy the stock and hold it. Logically stock in a stable, well run corporation will increase in value over time. In addition, you will get the dividends that are paid for owning the stock and as an added benefit, the shareholder credit each time you cruise.

If your intent is to purchase it for a single cruise...probably not worth the fees and hassles. Yes, your brokerage firm will add a fee at the time you purchase the stock. These are typically not large, but should be considered. And you will almost never get exactly the share price you see posted on line. It will vary by a penny or two (either way) while you are making the purchase.

Royal Caribbean is a different stock good for Royal, Celebrity, and Azamara. Not very easy to use since they have forever promotions which are not combinable

Just some basic math.

Yesterday's closing price was $45.94/share. The past annual dividends have been $1.40/share which would be $140 for 100 shares, and a rate of 3.05%. If you purchase a min. of 100 shares you are then eligible for the shareholder benefit. If you take just one 7 day cruise/year you would receive a $100 OBC. If you add that to the $140 dividend the return rate goes to 5.2%. More cruises/year will increase the return.

 

Of course stock values go up & down and you could loose or gain based on that. But as long as CCL still offers the shareholder benefit your return will be based on your actual purchase price. I purchased my stock for under $40/share so my percentage return is greater than the numbers stated above.

Sknight's analysis is excellent. I am going to add one little detail. The IRS (in the U.S.) has not figured out how to collect tax on the OBC. So, as a good citizen, I do pay tax on the dividend, but the OBC is tax free.

:D

Now that I think about it, if you are able to buy the CCL stock in a qualified account, you should be able to avoid or defer taxes on the dividend, and still be able to get the Carnival Shareholder's benefit. Has anybody tried that?

Sknight's analysis is excellent. I am going to add one little detail. The IRS (in the U.S.) has not figured out how to collect tax on the OBC. So, as a good citizen, I do pay tax on the dividend, but the OBC is tax free.

 

:D

 

Now that I think about it, if you are able to buy the CCL stock in a qualified account, you should be able to avoid or defer taxes on the dividend, and still be able to get the Carnival Shareholder's benefit. Has anybody tried that?

Sure, mine is held in my IRA....so at least the taxes are deferred. However, the taxes on $140./yr are insignificant.

Sknight's analysis is excellent. I am going to add one little detail. The IRS (in the U.S.) has not figured out how to collect tax on the OBC. So, as a good citizen, I do pay tax on the dividend, but the OBC is tax free.

 

:D

 

Now that I think about it, if you are able to buy the CCL stock in a qualified account, you should be able to avoid or defer taxes on the dividend, and still be able to get the Carnival Shareholder's benefit. Has anybody tried that?

Yes. My CCL stock funds my IRA and I have used it many times for OBC on Princess, HAL and Carnival.

Sure, mine is held in my IRA....so at least the taxes are deferred. However, the taxes on $140./yr are insignificant.

Yes. My CCL stock funds my IRA and I have used it many times for OBC on Princess, HAL and Carnival.

Thanks, folks. I'd never thought of that. I agree, it is a nit. :)

Sknight's analysis is excellent. I am going to add one little detail. The IRS (in the U.S.) has not figured out how to collect tax on the OBC. So, as a good citizen, I do pay tax on the dividend, but the OBC is tax free.

 

:D

 

Now that I think about it, if you are able to buy the CCL stock in a qualified account, you should be able to avoid or defer taxes on the dividend, and still be able to get the Carnival Shareholder's benefit. Has anybody tried that?

My Carnival Corporation stock is in a Roth IRA, so I do not pay taxes on the dividends - and I wouldn't have to pay taxes on the OBC even if the IRS tried to collect it from others.

My Carnival Corporation stock is in a Roth IRA, so I do not pay taxes on the dividends - and I wouldn't have to pay taxes on the OBC even if the IRS tried to collect it from others.

I agree that RothIRAs are awesome, NV.

Every year I bite the bullet, pay some tax and convert some IRA over to RothIRA. I'll won't get it all converted, but every bit helps.

The IRS (in the U.S.) has not figured out how to collect tax on the OBC. So, as a good citizen, I do pay tax on the dividend, but the OBC is tax free.

Likely some smart bean counter has figured a way to use it to minimize the taxes the corporation pays. Just a guess on my part, I am an engineer (ret) by trade.

Oh, regarding the stock proof, I keep mine in my bank's brokerage account and can see it online anytime. So I screen print with the date I am submitting the request clearly stated. I did have to knickname the account with my last name included, just for clarity.

Sknight's analysis is excellent. I am going to add one little detail. The IRS (in the U.S.) has not figured out how to collect tax on the OBC. So, as a good citizen, I do pay tax on the dividend, but the OBC is tax free.

The stockholder OBC, just like any OBC that comes with a Princess promotion or from a TA, is considered a discount or rebate on the cruise and is thus not taxable.

No different than you you buy a new car and GM (or whatever company) gives you $1000 cash back.

Or when you use a manufacturer's coupon at the grocery store. No income tax due on that discount.

Just some basic math.

Yesterday's closing price was $45.94/share. The past annual dividends have been $1.40/share which would be $140 for 100 shares, and a rate of 3.05%. If you purchase a min. of 100 shares you are then eligible for the shareholder benefit. If you take just one 7 day cruise/year you would receive a $100 OBC. If you add that to the $140 dividend the return rate goes to 5.2%. More cruises/year will increase the return.

 

Of course stock values go up & down and you could loose or gain based on that. But as long as CCL still offers the shareholder benefit your return will be based on your actual purchase price. I purchased my stock for under $40/share so my percentage return is greater than the numbers stated above.

Hi, we are based in the UK and the CCL shares price here is quoted as £3562.00p which is a lot more than $45.94 share you quoted, just wondering why there is so much difference in the price, could run to $ price for 100 shares but not UK price lol wouldn't have much left for cruises.

Isn't the UK stock in pence not pounds? That would make them about the same.