Carnival Stock

[yescruiseyes]

We are thinking of buying Carnival Stock. Advantages and disadvantages??  Do you have to already own it before booking the cruise, or can you purchase it anytime prior to embarkation??

[WatchHill]

We bought 100 shares back when it was trading in the mid $20's. Since then it has increased in value, [down now, so a good buy] plus the current dividends provide us with $200. yr. Holding the stock gives us OBC's across the CCL family of cruise lines. I fax in a copy of the broker statement [minus SS#], note my booking number, ship and date of sail and within a few days the OBC's show up. Best part is being able to stack the OBC's - military, TA perks, FCC, etc., on our frequent Princess cruises.  As long as you fax the broker statement a few weeks prior to the cruise, it will get posted. 

 

Benefits - well, the OBC isn't taxed like the dividends, so I consider it a great deal. 

 

Darcy

Edited March 30, 2019 by WatchHill

[yescruiseyes]

1 hour ago, WatchHill said:

We bought 100 shares back when it was trading in the mid $20's. Since then it has increased in value, [down now, so a good buy] plus the current dividends provide us with $200. yr. Holding the stock gives us OBC's across the CCL family of cruise lines. I fax in a copy of the broker statement [minus SS#], note my booking number, ship and date of sail and within a few days the OBC's show up. Best part is being able to stack the OBC's - military, TA perks, FCC, etc., on our frequent Princess cruises.  As long as you fax the broker statement a few weeks prior to the cruise, it will get posted. 

 

Benefits - well, the OBC isn't taxed like the dividends, so I consider it a great deal. 

 

Darcy

Thank you!

[yescruiseyes]

8 hours ago, WatchHill said:

We bought 100 shares back when it was trading in the mid $20's. Since then it has increased in value, [down now, so a good buy] plus the current dividends provide us with $200. yr. Holding the stock gives us OBC's across the CCL family of cruise lines. I fax in a copy of the broker statement [minus SS#], note my booking number, ship and date of sail and within a few days the OBC's show up. Best part is being able to stack the OBC's - military, TA perks, FCC, etc., on our frequent Princess cruises.  As long as you fax the broker statement a few weeks prior to the cruise, it will get posted. 

 

Benefits - well, the OBC isn't taxed like the dividends, so I consider it a great deal. 

 

Darcy

Do you have to have purchased it a certain amount of time prior to cruising? We leave in a month. 

[WatchHill]

There's no written policy as of now. I suggest you purchase the stock within the next few days, then print a copy of your broker statement - that's the document you'll need to fax to Princess.  We've had this stock for a number of years, and between the dividends, the increase in share value and the OBC [longer cruise, larger OBC], I have no plans to cash it in.  When I look at the  initial cost of 100 shares, and then add in the OBC's and dividends, plus the increase/fluctuation in per share value, there's no way i'll get rid of it. 

 

Darcy

[gerryl12]

Over the years I have more than paid for the shares with the shareholder OBC. 

I have RCCL shares also but am selling them as they only work for overpaid cruises not deals.

 

[socaljo]

On 3/30/2019 at 6:34 AM, yescruiseyes said:

Thank you!

Hi Darcy,

We bought CCL stock before our 28n cruise last month, so we got the max OBC, but nowhere can I figure out how much OBC we'll get for our upcoming 11n & 12n B2B that we've booked. Sounds like you have the experience to know! Lol! Thanks!

[WatchHill]

14 nights of longer should be $250.  http://www.carnivalcorp.com/phoenix.zhtml?c=140690&p=irol-sharebenefit

 

click shareholders benefit and you can download the info.  If your 28 night is 14 & 14 and you have two booking numbers, it's possible to get two promo perks....no guarantee, but is possible. Anything that's tax free works for me, just pay the income tax on the dividends. Over time, the OBC's mount up. 

 

Darcy

[1980dory]

On 3/30/2019 at 7:18 AM, WatchHill said:

We bought 100 shares back when it was trading in the mid $20's. Since then it has increased in value, [down now, so a good buy] plus the current dividends provide us with $200. yr. Holding the stock gives us OBC's across the CCL family of cruise lines. I fax in a copy of the broker statement [minus SS#], note my booking number, ship and date of sail and within a few days the OBC's show up. Best part is being able to stack the OBC's - military, TA perks, FCC, etc., on our frequent Princess cruises.  As long as you fax the broker statement a few weeks prior to the cruise, it will get posted. 

 

Benefits - well, the OBC isn't taxed like the dividends, so I consider it a great deal. 

 

Darcy

 

 

Princess' OBC benefits are outstanding because they can be compounded.  My wife and I are both military and shareholders also.

We have taken 14 day+ cruises and have received over $1000 in OBC along with other OBC 'gifts'.  In addition, your military OBC is refundable if you don't use it during your cruise.  Accounting-wise, knock that off the cost of your cruise and your overall cost may be a terrific bargain.  Or apply that  refunded amount to your next cruise.

[soonernstlouis]

Just to clarify, in order to get OBC credit the minimum Carnival stock investment is 100 shares.  At the current stock price, that equates to over $5,000.  

 

So not only would this decision not be for everyone (affordability) but should never be considered for short-term investing since a 1% stock price decrease between purchase and sale would wipe out $250 of OBC.

[ed01106]

On ‎6‎/‎9‎/‎2019 at 10:32 AM, soonernstlouis said:

Just to clarify, in order to get OBC credit the minimum Carnival stock investment is 100 shares.  At the current stock price, that equates to over $5,000.  

 

So not only would this decision not be for everyone (affordability) but should never be considered for short-term investing since a 1% stock price decrease between purchase and sale would wipe out $250 of OBC.

Might want to recheck that math.  A 1% decline of a $5000 investment is $50.  You would need an almost 5% decline at the  current price to wipe out a $250 OBC.  A 1% decline would wipe out the $50 you get for short cruises.  

 

I agree with you in principle that it is still a very risky short term investment particularly if you are buying on margin or if such a purchase would require incurring tax (on the sale of other assets) or would mess up the diversity of your portfolio. 

 

This purchase does not make sense for someone who plans to buy the stock, take one cruise, and sell the stock. A "triumph - style" disaster would not only ruin your vacation but could also greatly decrease your net worth.  

 

OTOH if you have $5000 to spare and plan to cruise at least annually over the coming decades and (this part is really really important) feel Carnival Corporation is a solid investment even without the OBC component, this could be a smart move.  Although if you have $5000 just lying around you might be a Seabourn customer rather than Carnival.       

[Ombud]

Down 8.85% now. However the 55 per share investment has return 8.5 per share since I bought it last November. So I'm still okay

[GenghisQuan]

Currently trading at a little over 48/share. Debating jumping in on it (already have 50 shares from other points in time).

[GenghisQuan]

Quick question for those of you who've used it before:
"anyone cruising on a reduced-rate or complimentary basis are excluded from this offer."

 

What is considered a reduced-rate offer? If I book through some third part site that also promises some rebate or OBC, or during a sale/promo, does that mean the OBC is no longer available?

[Travel Bear]

Can it be used with premier casino offer?

[ed01106]

Certainly a buying opportunity at the moment.   Close to 52 week low.  However, I am very bearish on all cruise lines stocks. 

[cb at sea]

Only buy stock in a company as an investment...not as a means to get a discount.  There are some major tax implications if you sell....beware!

 

[RocketMan275]

On 2/18/2020 at 5:48 PM, cb at sea said:

Only buy stock in a company as an investment...not as a means to get a discount.  There are some major tax implications if you sell....beware!

 

Getting a discount is an excellent reason to invest.  

You can treat a discount just as you would a dividend (assuming you cruise at least annually).

BTW, the dividend on CCL is $0.50 per share per quarter which is rather nice.

My CCL stock is in my IRA so there are no tax implications to selling.  Yes there are implications to withdrawing but no more than with any other investment.

 

[drsel]

Wait to see the impact of the Corona virus on The Cruise industry