Carnival Shareholder Benefit Date

[Floating_view]

I was looking at the Shareholder Benefit and notice that the benefit is applicable on sailings through July 31, 2020.  Since their stock is currently at a 52 week low, I was thinking of buying 100 shares.  Does anyone know if the Benefit is going to change after July of this year or be removed completely?

 

Thanks.

[kazu]

Just now, Floating_view said:

I was looking at the Shareholder Benefit and notice that the benefit is applicable on sailings through July 31, 2020.  Since their stock is currently at a 52 week low, I was thinking of buying 100 shares.  Does anyone know if the Benefit is going to change after July of this year or be removed completely?

 

Thanks.

 

The benefit has been the same for many years and is renewed each year at the Board -shareholders meeting.  There is no reason to expect any change that I am aware of.

 

It’s been a standard renewal for some time.

 

[VMax1700]

I applied yesterday for the stockholder benefit for a 15 day cruise in November 2020 and the $250 benefit was added.  No guarantee that the benefit will remain for ever.

[VMax1700]

Next quarterly dividend is payable on March 13th (shares are ex div at moment) and the dividend on 100 shares is $50. This will more than likely drop over the coming quarters.

[avian777]

1 hour ago, VMax1700 said:

Next quarterly dividend is payable on March 13th (shares are ex div at moment) and the dividend on 100 shares is $50. This will more than likely drop over the coming quarters.

Just curious, on what specific facts or projections from CCL do you base your dividend-reduction prediction?

[rkacruiser]

No inside information from me, but I would be very surprised if there was any change in the Shareholder Benefit offer.  

 

Buying a cruise line stock just to get the Shareholder Benefit may not be a great idea.  How does that stock "fit" into one's investment/savings plans?

[kazu]

1 minute ago, rkacruiser said:

Buying a cruise line stock just to get the Shareholder Benefit may not be a great idea.  How does that stock "fit" into one's investment/savings plans?

 

It really depends on how much of a percentage the investment is of your entire portfolio.

 

Mine is minimal and I have basically told my Financial Planner it is not up for discussion.

 

I might have bought it for the “wrong reason” but I knew why I was doing it and what the risks were.  It has paid me back many times with non taxable OBC + dividends + price increase.

[Petronillus]

2 hours ago, VMax1700 said:

I applied yesterday for the stockholder benefit for a 15 day cruise in November 2020 and the $250 benefit was added.  No guarantee that the benefit will remain for ever.

 

I thought the benefit to shareholders was an OBC in the amount of $100. Is it actually $250? Does it depend on the number of shares one owns?

[kazu]

4 minutes ago, Petronillus said:

 

I thought the benefit to shareholders was an OBC in the amount of $100. Is it actually $250? Does it depend on the number of shares one owns?

 

It depends on the length of your cruise.  shorter ones get $100 and longer ones get $250.  We have $250 for our upcoming (hopefully) TA of 14 days 😉 

[rkacruiser]

5 minutes ago, kazu said:

 

 

 

but I knew why I was doing it and what the risks were.  It has paid me back many times with non taxable OBC + dividends + price increase.

 

That describes my initial decision to make an investment in CCL as well as RCL.

 

2009 was a buying opportunity for cruise line stocks.  2020 may also provide a similar opportunity.  

[Floating_view]

7 minutes ago, rkacruiser said:

 

That describes my initial decision to make an investment in CCL as well as RCL.

 

2009 was a buying opportunity for cruise line stocks.  2020 may also provide a similar opportunity.  

That is my thinking for the benefit and the stock.

[VMax1700]

1 hour ago, avian777 said:

specific facts or projections from CCL

None from CCL, but with the current far reaching situation affecting the travel/leisure industries and the recent substantial drop in share value, I would be more than happy if the current returns continued for the next 12 months or so.

[rkacruiser]

2 hours ago, VMax1700 said:

None from CCL, but with the current far reaching situation affecting the travel/leisure industries and the recent substantial drop in share value, I would be more than happy if the current returns continued for the next 12 months or so.

 

The First Quarter Conference Call with the financial analysts will be coming in March.

 

Stay tuned.

[tv24]

CCL stock price has dropped very low.  2020 may indeed be a good time to buy.  We have god our money's worth in OBC and have no regrets on our 100 share purchase.  Not a major part of our portfolio, happily.

[wesport]

Dividend is never guaranteed. With all the cancellations and not knowing what the next couple of months will bring, I would assume they cannot maintain the current dividend. I bought my 100 share 6 years ago at $39. Now the share price is below what I paid 6 years ago at 36.50.  With that being said , the dividends and OBC I have received over the years, make up for the current loss in share price. There is no guarantee also whether the shareholder credit will continue past July. They have never adjusted it, so we shall see. It is a business, and CCL will make business decisions. 

[richwmn]

17 hours ago, VMax1700 said:

Next quarterly dividend is payable on March 13th (shares are ex div at moment) and the dividend on 100 shares is $50. This will more than likely drop over the coming quarters.

 

15 hours ago, avian777 said:

Just curious, on what specific facts or projections from CCL do you base your dividend-reduction prediction?

 

Just checked, the payout ratio is low enough that CCL could sustain it for a while on lower earnings

 

Payout Ratio 4

46.30%

[canadianbear]

20 hours ago, VMax1700 said:

I applied yesterday for the stockholder benefit for a 15 day cruise in November 2020 and the $250 benefit was added.  No guarantee that the benefit will remain for ever.

Have you done final payment?  We have a cruise on October and told it is too early to apply our CCL stocks.  

[VMax1700]

2 hours ago, canadianbear said:

Have you done final payment?  We have a cruise on October and told it is too early to apply our CCL stocks.  

Not yet. Final payment is due in August.

[wesport]

CCL is now down to 32.60 at close to a 6 percent yield. Hope this doesn't last too much longer. 

[canadianbear]

49 minutes ago, VMax1700 said:

Not yet. Final payment is due in August.

Wow-you’re lucky!

[MCC retired]

Someone on the Cunard Board posted that the Shareholder Benefit end date has been extended and is now July 31, 2021.

[Quartzsite Cruiser]

I just looked at the Shareholder Benefit on-line and the date was July 31, 2020.

[kazu]

2 minutes ago, Quartzsite Cruiser said:

I just looked at the Shareholder Benefit on-line and the date was July 31, 2020.

 

I just checked too and that’s what I saw.  The meeting is a few weeks away to decide on renewing it as they have done for years.

[rkacruiser]

2009, if I recall correctly, CCL dropped into the $20's per share before rebounding.  RCL dropped into the $5 range per share before rebounding.  

 

So much uncertainty at the present time, I think, to make a decision as to whether to buy or not.

[sevenseasnomad]

On 2/25/2020 at 4:57 PM, kazu said:

 

It really depends on how much of a percentage the investment is of your entire portfolio.

 

Mine is minimal and I have basically told my Financial Planner it is not up for discussion.

 

I might have bought it for the “wrong reason” but I knew why I was doing it and what the risks were.  It has paid me back many times with non taxable OBC + dividends + price increase.

Right on!  When I purchased the stock, I didn't care whether I make money from the stock or not.  I purchased it because I cruise a lot (at least 3 cruises a year).  Over the years, I've been paid back handsomely for that initial investment.  I also told my broker to never sell this stock.  Right now, it's still up from what I paid; however, were it to dip below that mark, I wouldn't care.  My son will inherit this portfolio, and since he also cruises, he won't sell it either, unless Carnival Corp. eliminates the OBC on a permanent basis.