If you’ve been following the stock market, you know cruise stocks have been battered over the past few weeks thanks largely to coronavirus fears.
Carnival Cruise Line stock, for example, is selling (as of this writing) for around $33 a share, compared to its 52-week high of $51.94.
Likewise, Royal Caribbean Cruises Limited is selling at around $77, compared to its 52-week high of $132.
But as big believers in the industry, we can’t help being fairly sure that it will rebound over time, making this a pretty good time to think about picking up some shares while they are at a bargain-basement price. And heck, there are plenty of other reasons to do so, too. For example…
1. Own What You Love
There’s something kinda cool about owning a piece, no matter how small, of something that brings you a whole lotta joy. Heck, an entire industry has sprung up over single-shares of Disney stock! After purchasing my first shares of Carnival stock, I received an E-mail about an upcoming meeting at which they would be holding a vote regarding members of the board. Silly as it is, it felt ridiculously cool to cast my vote, as if I was Alexis Carrington voting to oust Blake as CEO of Denver-Carrington on Dynasty.
2. You can earn onboard credits
Many companies offer real-world benefits to their stockholders, including on-board credits! For example, travelers who own at least 100 shares of Carnival Cruise Line stocks can earn up to $250 in credits, depending on the length of your voyage. A little research into your favorite line’s benefits might give you an added incentive to invest! The same is true for Norwegian Cruise Line Holdings stock. Any way you slice it, that’s a pretty nice perk!
3. Cruising Is A Growth Industry
In 2009, approximately 18 million people went on cruises. Ten years later, that number had increased to over 28 million people, according to statistics from the Cruise Lines International Association. Right now, the industry is experiencing a slump, with coronavirus fears causing an increase in cancellations and a slowdown in bookings. But a quick look at the history of the industry — which has dealt with everything from nurovirus to hurricanes — shows that it is incredibly resilient. With exciting new ships on the horizon and a vast untapped market of potential cruisers, there’s no reason to think that things will bounce back.
READ MORE: Carnival Adding 16 New Ships To Its Fleet
4. Two Words: Dividend Checks
Remember earlier, when we mentioned earning onboard credits? Well, we like to think of dividend checks as sort of pre-board credits, because you can immediately cash those puppies and apply them to the cost of your next cruise! Dividends aren’t guaranteed, but to again use a casino-related analogy: Why play a slot machine that doesn’t have a progressive jackpot as opposed to one that does? (Translation: Why buy a stock that doesn’t offer dividends?)
5. Lower Prices Could Lead To A Better Payday
There’s a reason casino metaphors work so well when talking about the stock market: playing the stock market is always a gamble. Which is why no one should ever risk money they can’t afford in either venue. But for those looking to dabble, the whole “buy low/sell high” thing would certainly imply that this could be a good time to look into cruise stocks. Although, as investment houses always warn, “past performance is no guarantee of future results.”
Do you own cruise line stock?