Royal Caribbean Cruises Ltd. (NYSE:RCL) Increases Dividend to $1.00 Per Share

Key Points

• Royal Caribbean Cruises Ltd. has increased its quarterly dividend to $1.00 per share, representing a 33.3% increase from the previous dividend of $0.75.
• The company has a payout ratio of 16.9%, indicating that its dividend is well supported by earnings, with expected earnings of $17.56 per share next year.
• Royal Caribbean's shares traded at $341.68, with a market capitalization of $92.81 billion and significant insider trading activity reported.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) declared a quarterly dividend on Wednesday, September 10th, RTT News reports. Shareholders of record on Thursday, September 25th will be given a dividend of 1.00 per share on Monday, October 13th. This represents a c) dividend on an annualized basis and a yield of 1.2%. This is a 33.3% increase from Royal Caribbean Cruises's previous quarterly dividend of $0.75.

Royal Caribbean Cruises has a payout ratio of 16.9% meaning its dividend is sufficiently covered by earnings. Analysts expect Royal Caribbean Cruises to earn $17.56 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 17.1%.

Royal Caribbean Cruises Price Performance

NYSE RCL traded down $3.63 during trading hours on Wednesday, hitting $341.68. 2,288,185 shares of the company's stock traded hands, compared to its average volume of 1,780,561. The firm's 50-day moving average is $336.68 and its 200-day moving average is $269.46. Royal Caribbean Cruises has a 52-week low of $156.01 and a 52-week high of $366.50. The company has a debt-to-equity ratio of 1.88, a current ratio of 0.23 and a quick ratio of 0.21. The company has a market capitalization of $92.81 billion, a PE ratio of 25.61, a PEG ratio of 0.97 and a beta of 2.12.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The company reported $4.38 earnings per share for the quarter, topping analysts' consensus estimates of $4.04 by $0.34. The business had revenue of $4.54 billion for the quarter, compared to analyst estimates of $4.54 billion. Royal Caribbean Cruises had a return on equity of 47.15% and a net margin of 20.97%.The company's revenue was up 10.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.21 earnings per share. Royal Caribbean Cruises has set its FY 2025 guidance at 15.410-15.550 EPS. Q3 2025 guidance at 5.550-5.650 EPS. Equities analysts forecast that Royal Caribbean Cruises will post 14.9 EPS for the current fiscal year.

Insiders Place Their Bets

In other Royal Caribbean Cruises news, Director Richard D. Fain sold 16,000 shares of the stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $311.02, for a total transaction of $4,976,320.00. Following the completion of the sale, the director owned 150,291 shares of the company's stock, valued at approximately $46,743,506.82. This represents a 9.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Vagn O. Sorensen sold 10,300 shares of Royal Caribbean Cruises stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $330.04, for a total transaction of $3,399,412.00. Following the completion of the sale, the director directly owned 16,407 shares of the company's stock, valued at approximately $5,414,966.28. The trade was a 38.57% decrease in their position. The disclosure for this sale can be found here. Insiders sold 31,507 shares of company stock worth $10,091,282 in the last quarter. 6.95% of the stock is currently owned by corporate insiders.

Institutional Trading of Royal Caribbean Cruises

Several large investors have recently added to or reduced their stakes in RCL. Frazier Financial Advisors LLC boosted its stake in Royal Caribbean Cruises by 27.1% during the second quarter. Frazier Financial Advisors LLC now owns 136 shares of the company's stock worth $43,000 after buying an additional 29 shares during the period. Prosperity Financial Group Inc. lifted its stake in Royal Caribbean Cruises by 0.5% in the second quarter. Prosperity Financial Group Inc. now owns 6,936 shares of the company's stock worth $2,172,000 after acquiring an additional 32 shares during the period. Westside Investment Management Inc. lifted its stake in Royal Caribbean Cruises by 29.1% in the second quarter. Westside Investment Management Inc. now owns 142 shares of the company's stock worth $45,000 after acquiring an additional 32 shares during the period. CX Institutional lifted its stake in Royal Caribbean Cruises by 1.4% in the second quarter. CX Institutional now owns 2,423 shares of the company's stock worth $759,000 after acquiring an additional 34 shares during the period. Finally, Rakuten Securities Inc. boosted its stake in Royal Caribbean Cruises by 16.1% in the second quarter. Rakuten Securities Inc. now owns 252 shares of the company's stock valued at $79,000 after acquiring an additional 35 shares in the last quarter. Institutional investors own 87.53% of the company's stock.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd.

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