Blog / $CCL Carnival Corp.: Great Value Maybe Great Yield

$CCL Carnival Corp.: Great Value Maybe Great Yield

Introduction

At first glance, this company qualifies as both a blue-chip and a high-yield opportunity that is simultaneously deeply undervalued.  However, what we often see on the surface does not always reflect the deeper issues that may be lurking.

From a business point of view, Carnival Corp. is cruising right along.  In contrast, price action over the last few years has been “cruisin for a bruising.”  Strong business results and weak price action often spells opportunity knocking.  On the other hand, there could be hidden risks that are not readily apparent.

When going through the company’s recent earnings transcripts as well as perusing their website, I found it somewhat unsettling that I found literally no mention of the company’s dividend policy.  They talk about purchasing shares, they talk about earnings growth and increasing returns on capital, etc., but virtually no mention of their dividend commitment or policy.  I felt it important to make our subscribers aware of what I found.  To be clear, I am not suggesting that the company is not committed to their dividend, nor am I suggesting that a dividend cut is imminent.  However, I do have some concerns that I felt compelled to point out.

Therefore, I offer the following FAST Graphs analyze out loud video which illustrates the opportunity and the potential risks of investing in this high-quality blue-chip dividend growth stock.  Caveat emptor!

FAST Graphs Analyze Out Loud Video:

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Disclosure:  No position.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.