If you cruise, and will cruise again, cruise line shares are cheap – and shareholders get folio credit when they take trips. A reader passes along that at current prices they get an effective 6% dividend annual when they take a 7 night cruise.
Just over a year ago I bought 100 shares, each, of CCL (which includes Carnival, Holland America, Royal Caribbean, and others) and of NCLH (NCL). I did not do so because I thought I was so wise as to be able to “beat the market”. Rather, having 100 shares on either entitles me to a $100 per cabin shipboard credit when I take a 7 day cruise on either conglomerate.
As you can imagine, I have gotten shellacked – but I invested no more than I could lose and its part of the “long game”.
Just now, 100 shares of CCL is about $1600 and 100 shares of NCL is $1700. I will not specuate where the prices will go, but a $100 shipboard credit now represents a 6% tax free dividend each time you use it.
Here’s the NCL offer which you can use as often as you cruise:
$250 Onboard Credit per Stateroom on Sailings of 15 Days or More.
$100 Onboard Credit per Stateroom on Sailings of 7 to 14 Days.
$50 Onboard Credit per Stateroom on Sailings of 6 Days or Less.
Offer valid for any cruise vacation on Norwegian Cruise Line®, Oceania Cruises® or Regent
Seven Seas Cruises®, excluding charter sailings.
Here’s the carnival offer which you can also use as often as you cruise and is similar in value.
My guess is that current volatility outweighs the shipboard credit, that a 6% annual dividend for once a year cruisers looks great in the pre-COVID19 era with a stable blue chip stock. You wouldn’t invest in a volatile tech stock because of that, and cruise lines don’t have the same long term growth potential of the best tech plays (but could well be oversold, I leave that to you).
However for someone taking 3 or more cruises per year you’re really just betting that the cruise line stays solvent.