Cruise Operator Royal Caribbean Sets Sail With Dividend Hike And Buyback Plan

Cruise line operator Royal Caribbean Group RCL shares are trading higher in premarket on Thursday.

The company has increased the quarterly dividend by 36% to $0.75 per share, payable on April 4, 2025, to shareholders of record at the close of business on March 7, 2025.

In December, the company announced a quarterly dividend of $0.55 per share.

In addition to the dividend announcement, the Board has approved the repurchase of up to $1 billion of common stock over the next twelve months.

“Our strong performance and balance sheet position allows us to further expand capital allocation while we invest in the future.” said President and CEO Jason Liberty.

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“With today’s announcement, nearly $500 million in dividends have been paid or declared in the last four months. Coupled with the newly authorized share repurchase program, these actions reflect our confidence in our business, our focus on disciplined capital allocation, and our commitment to delivering long-term value for shareholders.”

Last month, the company reported fourth-quarter sales growth of 12.9% year-on-year to $3.761 billion and an adjusted EPS of $1.63.

Gross Cruise Costs per Available Passenger Cruise Days increased 7.2% and passenger ticket revenues rose 13.7% to $2.59 billion.

As of Dec. 31, the group's customer deposit balance was $5.49 billion. Royal Caribbean held $388 million in cash and equivalents as of December-end.

Price Action: RCL shares are trading higher by 1.84% at $261.02 at the last check Thursday.

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