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. (CCL) 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.
Video Length: 00:09:08
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