no dividends in 2009

[m steve]

Carnival just announced that they will pay the final 40c a share dividend in December but none in the near future. The stock dropped $4.72 as of 11 am today. I can see the OBCs disappearing as well. My stock has dropped the eqivilent of 2 balcony cabins for 7 nights. What a great feeling. I'll probably sell mine after Nov. cruise and take the loss from my taxes. My partner can buy it after 1/1 for future cruise credits if they don't discontinue them.

[Cruzman]

I've actually made some money lately buying and selling CCL stock. There have been wild swings in the market price and if you buy when it is down (like today), then put in a sell order at a price a few dollars higher... That's what I've been doing and so far so good. The low for today (and the year) was 21.92 this morning; it's already bounced back to over $24.

[Sunsailor]

Here's the news story. The reasons for suspending the dividend are good and as a shareholder I am fine with this decision

 

MIAMI, Oct. 31 /PRNewswire-FirstCall/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today announced that it has declared a December dividend of $0.40 per share and that its Board of Directors has voted to suspend its quarterly dividend for the next quarter as a result of the highly volatile state of the financial markets. The company intends to maintain the dividend suspension throughout 2009 but will reevaluate its dividend policy based on the circumstances prevailing during the year.

 

"The company's cash flow remains strong. However, in light of the unusually high cost of raising new capital, continuing concerns about financial institution liquidity and current uncertainties in the global economy, we believe that preserving cash is a prudent step which will further strengthen the company's balance sheet and enhance our financial flexibility," said Micky Arison, Carnival Corporation & plc chairman and CEO. The dividend suspension would result in annualized cash savings of approximately $1.3 billion. The significant liquidity provided by the dividend suspension gives the company the flexibility to fund its 2009 capacity growth without the need to access credit markets.

[Krazy Kruizers]

Thanks for the information.

 

Since we bought it when it was $12 a share -- no use in selling it now and paying capital gains.

[m steve]

but I bought it at $49.

[cruz chic]

but I bought it at $49.

Ouch...I bought at $29 recently and I'm wondering if it was a good decision based on what I am hearing now.

[jcrandle]

I'm certainly not privy to the financial details that would influence CCL's decision to keep or drop the OBC, but I suspect that they will keep it. Unlike the dividend, which they pay out in cash, the OBC is spent by the cruiser. And many will spend it on high profit items, booze, shore excursions, on board shops, etc. The only item the OBC wouldn't return a significant portion to CCL would be if you spend it on gratuities, as those dollars leave the corporation one for one. The others are discounted, since a $1 OBC applied against a bar bill is likely only to cost CCL $0.50 or less.

 

And I think we all agree that it is a difference maker in chosing the brand we cruise with, if all other things are equal.

[richwmn]

I'm certainly not privy to the financial details that would influence CCL's decision to keep or drop the OBC, but I suspect that they will keep it. Unlike the dividend, which they pay out in cash, the OBC is spent by the cruiser. And many will spend it on high profit items, booze, shore excursions, on board shops, etc. The only item the OBC wouldn't return a significant portion to CCL would be if you spend it on gratuities, as those dollars leave the corporation one for one. The others are discounted, since a $1 OBC applied against a bar bill is likely only to cost CCL $0.50 or less.

 

And I think we all agree that it is a difference maker in chosing the brand we cruise with, if all other things are equal.

Another consideration on the OBC is that it is much less costly than the dividend. The dividend is paid on all shares regardless of ownership. OBC is only paid to named owners. 76.50%(According to yahoo financial information) is owned by institutions, which would not qualify for the OBC.

Rich

[kryos]

Another consideration on the OBC is that it is much less costly than the dividend. The dividend is paid on all shares regardless of ownership. OBC is only paid to named owners. 76.50%(According to yahoo financial information) is owned by institutions, which would not qualify for the OBC.

Rich

And, too ... OBC is really not "out of pocket" money for Carnival. They don't have to actually cut any checks to pay it. In fact, I'd be willing to bet that people who receive OBC tend to spend the equivalent onboard that anyone else spends. The OBC is generally looked upon as "gravy" by them.

 

So that OBC really doesn't cost Carnival a dime. In fact, it probably stimulates onboard spending by the people who receive it.

 

They may discontinue dividends in the immediate future, but I'd be shocked if the OBC went away.

 

Blue skies ...

 

--rita

[Cruising-along]

Ouch...I bought at $29 recently and I'm wondering if it was a good decision based on what I am hearing now.

 

Me too, I'm wondering the same thing. Bought 3 or 4 months ago at $33 and then this week at $23.

[JimVrhovac]

We did not buy it for appreciation. We bought it to get the on board credits and they have almost paid for the stock so in a little while the stock will be free and no tax ramafications for the profit made from it.

 

Ruth & Jim

[Cruzman]

Thanks for the information.

 

Since we bought it when it was $12 a share -- no use in selling it now and paying capital gains.

 

Anyone planning to sell stocks anytime soon, should consider the strong possibility that capital gains rates will soon be going up.

[hammybee]

Me too, I'm wondering the same thing. Bought 3 or 4 months ago at $33 and then this week at $23.

 

One is hard-pressed to find any stock that is worth as much as it was, just a few months ago.

[Cruising-along]

One is hard-pressed to find any stock that is worth as much as it was, just a few months ago.

 

Hi Hammy :)

Sorry, my post wasn't clear I'm afraid. What I meant to say is we bought some at $33 a few months ago, and then bought more this week at $23 (which we were happy about). Then almost immediately the news came out about discontinuing the dividends.

 

But as Jim V. said, we didn't buy the stock for the dividends either -- although they would have been nice. We're such newbies we've only gotten 1 dividend, and will (hopefully) get our first OBC next cruise in April. :p

[m steve]

no matter how many shares you own there is only one OBC per cruise. You should get the dividend in Dec. since you held the stock when they declared the dividend. It's almost enough for a bottle of wine on the ship.

[RuthC]

no matter how many shares you own there is only one OBC per cruise.

Provided you own at least 100 shares, that is. More than that, for the purpose of OBC, is overkill.

[Cruising-along]

Provided you own at least 100 shares, that is. More than that, for the purpose of OBC, is overkill.

 

That's right! :)

[MadManOfBethesda]

Anyone planning to sell stocks anytime soon, should consider the strong possibility that capital gains rates will soon be going up.

 

 

I don't think too many people will need to be concerned with capital gains this year.

 

Now, capital losses on the other hand........

 

:)

[BAYA]

On the Carnival Corp. investor web site (http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-sharebenefit) I went to check for any changes to the shareholder benefit. It looks like there are new deadlines for them. Reservations must be made before Feb. 28, 2009 and the OBC benefit is available through July 31, 2009. I've been looking on the boards and have not noticed anyone else talking about this. Am I mistaken that this is a recent change?

[FLACRUISER99]

On the Carnival Corp. investor web site (http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-sharebenefit) I went to check for any changes to the shareholder benefit. It looks like there are new deadlines for them. Reservations must be made before Feb. 28, 2009 and the OBC benefit is available through July 31, 2009. I've been looking on the boards and have not noticed anyone else talking about this. Am I mistaken that this is a recent change?

No, the same wording as last year and the yeay before.

[RuthC]

Reservations must be made before Feb. 28, 2009 and the OBC benefit is available through July 31, 2009.

As noted, this is standard language. The stockholders credit is typically renewed at the stockholders meeting held in the spring.

[BAYA]

As noted, this is standard language. The stockholders credit is typically renewed at the stockholders meeting held in the spring.

 

Thanks for the info, Ruth and Jtutak. I am a new shareholder this year so wasn't aware of the process. I'm also a RCCL shareholder but they don't have similar deadlines posted.

 

Cheers.

[m steve]

sale I didn't think that they were talking about their stock!:eek:

[m steve]

Now all those who bought it a few years ago are now in the loss column too. I'm down over $2800. Thats an balcony cabin for 2 for 7-10 days depending on the cruise. I don't cruise enough to have OBCs offset the loss. I'd sell now but leaving in 10 days for a 20 day cruise w/$250 obc. Don't want to add insult to injury.

[hammybee]

Now all those who bought it a few years ago are now in the loss column too. I'm down over $2800. Thats an balcony cabin for 2 for 7-10 days depending on the cruise. I don't cruise enough to have OBCs offset the loss. I'd sell now but leaving in 10 days for a 20 day cruise w/$250 obc. Don't want to add insult to injury.

 

 

The market had the worst day, the worst week, the worst month and now the worst two day slide in 30 years. It's a rare bird/fund bought in the past few years that is not in the red.