Topic: How To Invest

Q: Hi, all. I wonder what your thoughts are on Carnival Corporation. We only own 100 shares, but as we spend about a month a year with Princess, owning 100 shares gets us about $500 U.S. in spending credits on their cruises as a shareholder benefit. Plus, it has a nice, decent dividend. Thanks.

Article Excerpt

A: Carnival Corp., $44.68, symbol CCL on New York (Shares outstanding: 718.6 million; Market cap: $31.7 billion;, operates a fleet of 104 cruise ships worldwide and is based in Doral, Florida. Carnival’s portfolio of cruise line brands includes Carnival Cruise Line, Fathom, Holland America Line, Princess Cruises and Seabourn in North America; P&O Cruises and Cunard in the U.K.; AIDA Cruises in Germany; Costa Cruises in Italy; and P&O Cruises in Australia. With its size and global reach, Carnival targets every segment of the global cruise market regardless of customer budget, itinerary, geography, demographics, or lifestyle. North American sales account for 55.5% of total revenue, with Europe contributing 28.0%, Australia and Asia, 14.1%, and all others, 2.4%. Besides selling cruise ship tickets, Carnival earns approximately 25% of its revenues from selling high-margin, onboard goods and services. They include beverage sales, casino gaming, shore excursions, gift shop sales, spas, and a variety of other services. Despite several years of negative press, which includes the Costa…