Cruise prices are out of control!

[Bob & Sandy]

Just out of curiosity, how?

 

I assume he is talking about reinvesting the dividends into buying more shares of the stock/mutual fund. Otherwise, the dividend is like simple interest.

 

Actually, no. In the category of equities, there are many companies that perennially raise their dividend payments. As the dividend is increased as a percentage, the dividend will compound. For example, you buy a 100 shares of XYZ, year one, they pay a 3% dividend giving you $3. Year two, they raise it by 8%, giving you $3.24. Year three, they raise it by 8% again, giving you $3.4992. Year four, they raise it by 8% again, giving you $3.7791.

 

As can be seen, eventually the dividend will be far greater than the purchase price of the stock. Do a google search for 'dividend aristocrats', and you'll discover companies like AT&T, 3M, Coca Cola, Johnson & Johnson, etc.

These are solid companies (generally not ones that are 'exciting') but profitable year after year after year.:D

Edited September 20, 2015 by Bob & Sandy
spelling error

[postmeome]

We have been cruising since 2010,paid £100 per day per person then,still paying same now from UK.Only once paid less,that was on Explorer from Southampton in june this year,£60 per day per person booked 2 weeks before sailing,so there are deals out there.

[Big_G]

 

I assume he is talking about reinvesting the dividends into buying more shares of the stock/mutual fund. Otherwise, the dividend is like simple interest.

 

Actually, no. In the category of equities, there are many companies that perennially raise their dividend payments. As the dividend is increased as a percentage, the dividend will compound. For example, you buy a 100 shares of XYZ, year one, they pay a 3% dividend giving you $3. Year two, they raise it by 8%, giving you $3.24. Year three, they raise it by 8% again, giving you $3.4992. Year four, they raise it by 8% again, giving you $3.7791.

 

As can be seen, eventually the dividend will be far greater than the purchase price of the stock. Do a google search for 'dividend aristocrats', and you'll discover companies like AT&T, 3M, Coca Cola, Johnson & Johnson, etc.

These are solid companies (generally not ones that are 'exciting') but profitable year after year after year.:D

 

I understand what you're trying to say but that's not compounding. It's just raising the dividend. Compounding is increased earnings based on previous earnings. In a way a DRP is compounding because it's buying more stock and therefore increasing your dividend payout based on the number of stocks you own but the dividend itself is not compounding.

Edited September 20, 2015 by Big_G

[bananawindnj]

Cruising since 2004, living in NJ, most of our cruises were out of Bayonne or Baltimore. It seems the days of reasonable price cruises are gone. The Liberty has crazy prices, the Anthem is worse. The Grandeur in Baltimore is not that much better for an old small ship without a lot to offer. RCI stock is pushing $100 and everyone at corporate is very happy. As senior citizen cruisers we are not. Am I the only one that feels this way? Just thought I would throw it out there. I will probably get flamed for my opinion.

 

 

I agree 100% with the OP. ALSO living in NJ , and cruises at local ports have been getting more and more expensive. Yes, deals are out there for people willing to fly or drive some distance to get there.

In Baltimore they are reducing the sailing days per cruise and keeping or slightly raising the cabin prices. Bermuda cruise prices are getting outrageous. If someone wants to take 3 or 4 cruises a year locally it has gotten to be more expensive. Too many people in the Midlantic states can afford these higher prices , especially when they may only take one cruise a year. Smaller ships in Baltimore fill up quickly.