Dividend raised

[caribill]

So here is a question for you. .... So is it better to stock up on the cash for a "free" cruise or $$ to apply to balance? Or get more stock?

 

If you think the stock will appreciate in the future, then reinvest the dividends.

 

 

If you think the stock is a poor investment and will be worth less in the future, then get the cash and also sell all shares you have above the 100 needed for the OBC.

 

The current dividend is at an annual rate of 3.1% of the current stock price. If you feel you could earn more than 3.1% elsewhere, then take the cash and invest it elsewhere.

[Haboob]

Have to admit, I'm of kinda mixed thoughts on the rising dividends for CCL. On the one hand, it's definitely made my shares of CCL that we purchased around $31 a pretty reasonable choice. But the non-shareholder part of me would rather see some of this money they're paying out to shareholders be used instead to roll back some of the cost-cutting measures that you see on the ships.

 

If they're raising the dividend and authorizing share buy-backs, CCL's bottom line

is growing, i.e. the cost-cutting is not keeping many people from buying passage.

 

"If it ain't broke, don't fix it" says they are not going to change course unless

demand softens.

[paul929207]

So here is a question for you. We have our 100 shares, for the purpose of OBC. I think I got them for in the mid 40's when they had been in the 50's so I'm OK with that. Didn't know about it before hand, so I can't be sad over not knowing about it when it was $30 and below. I had them reinvesting in shares...but I really only have this stock for the purpose of OBC so I switch it recently to not buying more stock with the dividends but just saving cash...kind of a bonus for cruises in future. Thoughts? More stock doesn't do me any good for what I have it for..which is the OBC. So is it better to stock up on the cash for a "free" cruise or $$ to apply to balance? Or get more stock?

Beyond the 100 shares that get you the OBC, you need to look at the additional shares as an investment. Do you want to hold CCL as an investment going forward? Like any other investment, do you feel that the dividends and capital appreciation are enough to hold the stock. That is up to you and/or your investment advisor to decide.

[framer]

Personally CCL is always a trade...

 

framer

[framer]

CCL stock is now at a 1yr low. If you been thinking about getting your 100 shares it might be a good time.

 

framer

[Pierlesscruisers]

CCL stock is now at a 1yr low. If you been thinking about getting your 100 shares it might be a good time.

 

framer

 

While it is lower than it has been it is not true that it's at a 1 year low. A year ago today, Carnival stock was trading at $57 plus some cents, today it is almost at $64. True, it did almost hit $72 a share at the end of January, but it's not really close to being the lowest and is, in fact just about at the midpoint between the low and the high point. Not only that but the announced next dividend is 25% higher than the one from the corresponding period last year ($.50 vs $.40 per share) and is the highest it's been in at least 4 years! All that said, however, it probably is a good time to buy following the "buy low, sell high" rule!

 

Tom

[Haboob]

CCL stock is now at a 1yr low. If you been thinking about getting your 100 shares it might be a good time.

 

framer

 

Uhh... Make that a 6 month low.

 

This time last year it was about 5 points lower than today.

[paradiselivin1]

I'll take it. We bought high but wanted immediate OBC for two booked cruises. We'll get our money out of it over time and can't sweat the small investment.

[framer]

OK it was about an 11 month low, big deal... It could still be a great 1st step in for someone.

[4everOrcruiser]

I am a Canadian who has just purchased my CCL shares, unfortunately just days before they began to fall. I knew the stock would be volatile from time to time so I'm not worried. After watching and waiting for something to happen with the stock values as has just happened and when it didn't, I decided to purchase, a week or two too early. I have already applied it to two cruises for a total OBC of $350 US$ or @ $450 Can$. All in all, I'm still happy with my decision to buy now.

 

I do have a question, especially for other Canadian investors. I was just told today from my financial advisor that I cannot take part in the DRIP because Carnival Corp is incorporated outside of North America. I have placed my stock inside my TFSA. Apparently I can save my dividends and purchase more shares once a year. I would appreciate any information shared if this is the way to proceed or have other Canadian investors found other ways around this. I guess in the long run it does not matter, except I don't know if I will be charge a commission fee for this once a year transaction. Thank you for any comments.