Royal Caribbean Cruises (RCL) has been pummeled by the market downturn resulting from the coronavirus scare. The stock is down over 30% in the past month and roughly 40% year-to-date. Simultaneously, the valuation has gone down to ~8.6X based on earnings and yield has shot up to almost 4%. As Baron Rothschild famously said, “buy when there is blood on the streets”, which means pretty much going against the crowd and when the fear factor is very high. For income investors, it may be possible to get a company with leading market share and a low valuation and high dividend…
Valuation & Dividend Safety Analysis: Royal Caribbean Cruises (RCL)
Dividend Power
Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor, analyst, and writer on dividend growth stocks and financial independence. His writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial sites. In addition, he is part of the Portfolio Insight and Sure Dividend teams. He was recently in the top 2.5% out of over 26,000+ financial bloggers, as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.
