Related Symbol
avatar
@kewur 5 months ago

Royal Caribbean Hikes Dividend, But Yield Remains Modest

Royal Caribbean Hikes Dividend, But Yield Remains Modest

Royal Caribbean (RCL) just raised its dividend to $1.00, but the yield is still a modest 0.9%. Their payouts are well covered by earnings and cash flow, and EPS is forecast to jump 67% next year. While the dividend has been growing at 9.6% a year and earnings have surged, the company's history includes at least one dividend cut in the past decade. Still, the low payout ratio and strong earnings growth suggest sustainability for now. Worth noting there are two warning signs flagged by analysts if you’re considering RCL.
post thumbnail
@Simonwhite 5 months ago

Shareholder friendly capital allocation, and travel/tourism sector doing good is a good sign. Worth getting in.

@BrianHoward 5 months ago

This dividend hike to $1.00/share signals strong confidence in its recovery and cash flow, but with a sub-1% yield, it’s more a growth play than an income stock. Investors looking for high dividends may find better options elsewhere.

@BrianHoward 5 months ago

Modest? More like non-existent. It shouldn’t be considered to invest in  . There’s plenty other reasons.

@AntonioMyers 5 months ago

Royal Caribbean’s dividend boost highlights solid business momentum, but the low yield limits its appeal for income investors: the main upside still lies in stock price growth. So IMO, not too bad.