On Thursday the world’s largest cruise company Carnival Corporation (CCL) announced that it is reestablishing its share buyback program and declared its quarterly dividend of 25 cents per share.
The Miami, Florida-based company originally established a $1 billion share buyback plan in September of 2007. Since then the company has purchased $835 million worth of shares. However, on Wednesday the company’s board approved the increase of the remaining $165 million repurchase authorization to $1 billion.
“Our ongoing share repurchase program demonstrates our continued confidence in the earnings power of our global brands,” said Micky Arison, Carnival Corporation chairman and CEO. “We remain committed to increasing shareholder returns through a combination of dividend distributions and opportunistic share repurchases,” he added.
Furthermore, Carnival declared its quarterly dividend. Shareholders of record on February 22 will received a dividend of 25 cents per share paid on March 15.
Carnival shares were up 27 cents, or +0.71%, during morning trading on Thursday. The stock is up +28.82% over the past year.
The Bottom Line
Shares of Carnival Corp (CCL) have a 2.61% dividend yield, based on last night’s closing stock price of $37.82. The stock has technical support in the $34-$35 price area. If the shares can firm up, we see overhead resistance around the $40-$41 price levels.
Carnival Corporation (CCL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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