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OBC for CCL and CUK?


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On 7/11/2020 at 2:04 PM, bobandsherry said:

Either is fine. Right now CUK is trading at lower price that CCL, but same benefits.

https://www.carnivalcorp.com/investor-relations

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Hey thanx for the reply + link. I apologize for taking so long to respond. I must have messed up my setting, I didn't get a notification. Thanx again!

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6 minutes ago, Eli_6 said:

Yes, I own both.  You can combine them to get to your 100.  CUK tends to trade slightly lower than CCL.  Not sure why.

 

This provides an explanation. If/when Carnival pays a dividend again, CUK will give a better % yield since it trades lower but has same dividend payout.  And for Shareholders OBC, it also works out better as it gives same OBC.  

 

https://www.fool.com/investing/2020/04/15/why-does-carnival-have-2-stocks-and-which-is-the-b.aspx

 


The more likely reason has to do with the two stocks' respective connections to their home markets. The stock tickered CCL is a member of the S&P 500 index, so any index funds tied to the S&P 500 have to own shares of that stock. Meanwhile, the stock tickered CUK tracks the price of the London-listed shares that are included in the U.K.'s premier FTSE 100 index. When the U.S. stock market overall looks more attractive than the U.K. market, then CCL shares will fetch a higher price. When the U.K. market is in favor, then CUK shares can take their turn in the lead.

 

 

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34 minutes ago, bobandsherry said:

 

This provides an explanation. If/when Carnival pays a dividend again, CUK will give a better % yield since it trades lower but has same dividend payout.  And for Shareholders OBC, it also works out better as it gives same OBC.  

 

https://www.fool.com/investing/2020/04/15/why-does-carnival-have-2-stocks-and-which-is-the-b.aspx

 

 

 

 

So, are you saying that it is better to buy CUK when they are lower than CCL because ultimately they have the same "rights"?  

Edited by Eli_6
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CUK is still showing a dividend, where CCL is not (at least on Fidelity). So, since it's about $3 per share lower, I went with CUK strictly to get the OBC on our 14 day Jan Panama Canal cruise. Dividends are never guaranteed, so I wouldn't be surprised if it's canx soon. I own a few other ADRs and there are fees involved along with it bein a pita at tax time (Foreign taxes withheld). Soooo, if you're a buy n hold, think I'd go with CCL.

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CUK is still showing a dividend, where CCL is not (at least on Fidelity). So, since it's about $3 per share lower, I went with CUK strictly to get the OBC on our 14 day Jan Panama Canal cruise. Dividends are never guaranteed, so I wouldn't be surprised if it's canx soon. I own a few other ADRs and there are fees involved along with it bein a pita at tax time (Foreign taxes withheld). Soooo, if you're a buy n hold, think I'd go with CCL.
I have a few foreign stocks as well. No pita for me, I just enter the details into my tax program and it handles everything. If paying someone then it's their pita. But if you do your own paper return well this is the least of the pita.

As for the dividend, Carnival has announced they have put payout on hold, so CUK too as they get the same dividend payout. And this is why CUK is better value as it trades lower which makes the dividend yield even sweeter. Those who do covered calls also find an advantage.

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