As Carnival Resumes Dividends, Should You Buy CCL Stock?

Core Viewpoint - Carnival (CCL) shares surged approximately 10% after the company reinstated its dividend and reported Q4 earnings that more than doubled year-over-year to $0.34 per share [1][4] Financial Performance - Q4 earnings increased to $0.34 per share, more than doubling compared to the previous year [1] - Carnival's stock has risen 89% from its year-to-date low, indicating strong recovery momentum [2] Dividend Reinstatement - The reinstatement of the dividend after a six-year suspension signals operational stability and confidence in cash flow, allowing for shareholder returns while supporting growth [3] - This decision marks a significant turning point for Carnival, moving away from pandemic-driven losses and debt restructuring [4] Future Guidance - Management provided optimistic full-year guidance, projecting net yields to increase by at least 2.5% in fiscal 2026 [1] - Analysts recommend maintaining positions in CCL shares as the consensus rating is "Strong Buy" with price targets suggesting nearly 40% upside potential [7][8] Technical Analysis - Carnival's stock is currently trading at a price-to-sales (P/S) multiple of 1.51, making it relatively cheaper compared to competitors like Royal Caribbean (RCL) [5] - The stock has surpassed its 100-day moving average, indicating bullish momentum in the near- to medium-term [6]