wrapien Posted March 27 Report Share Posted March 27 I am curious about when RCL will start paying dividends again. Has anyone heard anything? Quote Link to comment Share on other sites More sharing options...
CyclingVa Posted March 27 Report Share Posted March 27 I have not heard anything, Would love to see it. Im glad its come back up to where it was pre covid. I actually bought mine during covid when it was in the upper 20's. Midwest Cruiser, DoomSlayer, Jhibb68 and 1 other 4 Quote Link to comment Share on other sites More sharing options...
Cakemeister Posted March 27 Report Share Posted March 27 1 hour ago, wrapien said: I am curious about when RCL will start paying dividends again. Has anyone heard anything? Royal Caribbean Group Reports Strong 2023 Results and Forecasts Record Earnings for 2024 (yahoo.com) They need to pay off some more debt first. In the meantime, you can get onboard credit every time you cruise if you own 100 or more shares. That's sort of like a dividend. Ryan79, TXCoastPatriot, Midwest Cruiser and 1 other 4 Quote Link to comment Share on other sites More sharing options...
Midwest Cruiser Posted March 27 Report Share Posted March 27 I'm at a cost basis of around $48 a share. Wish we would have had a little more free cash at the time to buy more. Told my financial planner that the stocks were going to pop back up. Also agree with @Cakemeister that the debt paydown needs some more time before the Dividends would be back into the picture. cruisellama 1 Quote Link to comment Share on other sites More sharing options...
wordell1 Posted March 31 Report Share Posted March 31 On 3/27/2024 at 9:02 AM, CyclingVa said: I have not heard anything, Would love to see it. Im glad its come back up to where it was pre covid. I actually bought mine during covid when it was in the upper 20's. Me too, I wish I had bought a lot more. Quote Link to comment Share on other sites More sharing options...
Bean79 Posted April 15 Report Share Posted April 15 It's definitely doing better than carnivals stock. Quote Link to comment Share on other sites More sharing options...
Bowen Posted April 17 Report Share Posted April 17 On 4/15/2024 at 3:02 PM, Bean79 said: It's definitely doing better than carnivals stock. I always wonder why this is. We bought during COVID when it tanked, and we also bought Carnival during their $8 release (or whatever it was), RC has done great, Carnival is struggling. WAAAYTOOO 1 Quote Link to comment Share on other sites More sharing options...
skywalk640 Posted April 17 Report Share Posted April 17 5 hours ago, Bowen said: I always wonder why this is. We bought during COVID when it tanked, and we also bought Carnival during their $8 release (or whatever it was), RC has done great, Carnival is struggling. CNBC actually recently did an article/video on this: https://www.cnbc.com/2024/04/15/royal-caribbean-is-leading-the-charge-in-the-cruise-industry-comeback.html Basically RC took on less debt during the pandemic and has recovered faster than everyone else in terms of profitability. Quote Link to comment Share on other sites More sharing options...
Jmccaffrey Posted April 18 Report Share Posted April 18 It also help that the RC has larger Ships that become profitable at lower cap. Example Oasis class ships only need to fill to 40% before they make a profit. Unlike the older Carnival ships that need upward of 70%+ before they become profitable. This one fact help RC in the restart become profitable far faster. Every quarter that is not in the red allows them to pay back debt. Quote Link to comment Share on other sites More sharing options...
billdauterive Posted April 18 Report Share Posted April 18 I wouldn't expect to see dividends in the near or medium term (less than 5 years). I even have doubts if it will ever pay dividends again. They still have over $20B of debt on the books. Even after a blockbuster year last year, they only retired about $2B of that long term debt. In fact their long term debt actually GREW the last quarter (which I assume was mostly from Icon so not really too worrisome). Now companies will (and should) carry at least some debt, but Royal was consistently between $7-8B in long term debt pre-shutdown. Their debt to equity ratio was usually less than 1 (closer to 2/3) and is now about 4. This isn't even including all the new long term debt they will keep accruing for revenue generating things like new Icon-class ships, potential restarting of delayed amplifications, and new beach clubs. All that new debt is probably good debt as the long term ROI should be pretty significant for those items as we're seeing today from things like Coco Cay and Icon. However short to medium term means there is a TON more uses for any available free cash flow (investments to grow or repayment of debt to more normal levels) before a dividend payment would even begin to be considered. TLDR; no dividends anytime soon or maybe ever again Quote Link to comment Share on other sites More sharing options...
Geezer Of The Seas Posted April 20 Report Share Posted April 20 On 4/17/2024 at 11:07 AM, Bowen said: I always wonder why this is. We bought during COVID when it tanked, and we also bought Carnival during their $8 release (or whatever it was), RC has done great, Carnival is struggling. Carnival Corp has 1.2 billion plus shares outstanding. Royal Caribbean Ltd? About 30 or so percent of that total. And most recent net margin, Royal leads the pack at 12.8%, Carnival and NCLH are hovering around 1.5-2%. Carnival IIRC also pledged 17 ships across their total fleet as collateral against high interest loans or high yield bonds (junk). All 3 lines are heavily leveraged still, but Royal appears best positioned to shovel their way out, though I wonder how by all that's holy they all keep making enormous capital expenditures on infrastructure and ships in the current environment (cost of money). Seems like when/if 'the music stops again' all could be left without a chair............ WAAAYTOOO 1 Quote Link to comment Share on other sites More sharing options...
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