In an unexpected announcement this morning, cruise ship operator Carnival Corporation (CCL) said it would be suspending its stock dividend for 2009.
The company cited a desire to preserve cash in the current uncertain economic climate for the dividend suspension. Carnival management said it would re-evaluate its dividend policy over the course of next year, but that the Q1 2009 dividend payment has definitely been suspended.
In a strong reaction to the announcement, shares of CCL were down over 16% in morning trading Friday.
The Bottom Line
This news is somewhat shocking, since many believed Carnival would be better able to weather the economic storm than many of its travel industry competitors. We were not recommending the company prior to this announcement, and will henceforth be dropping our coverage of Carnival Corporation, as it no longer pays a dividend. Bon Voyage!
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
Tom Reese/Paul Rubillo, Dividend.com
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