Dividends and Princess Cruises suspends operations of entire fleet for 2 months

If you think about the news of the past month, one of the stories which will come forth is people on a cruise ship being stuck off Hong Kong and San Francisco and the number of coronavirus infections doubling. The air filter systems ensure air is flowing but for a virus that will also mean the air systems enhance the problems. It was not surprising, all the cruise operators had to suspend operations. If you were taking a cruise the names Princess Cruises which is owned by Carnival, Royal Caribbean Corp, and Norwegian Cruise Line Holdings have ceased operations for the next 2 month.

In an article by Uday Sampath Kumar of Reuters, the cruise lines and all tourism operators have been hard hit by the coronavirus. Part of the solution to stop or slow down the virus is for people not to be near each other or less socializing. Governments around the world have made travel to the ports very hard by closing borders; the travel and tourism industry being very dependent on a ship docking for people to enjoy themselves on land has meant unemployment will rocket upwards, which is why the government is trying to help out.

Linking to dividend paying stocks, the cruise lines were good solid companies because they serve a need and as long as the weather is good, they are a wonderful method to go to various countries and enjoy the warm weather. It is impossible to plan for a virus, outside of having rainy day funds, because the virus changes normal life for hundreds of millions of people. As countries shut down normal operations for month or two, it is very different than one week such as when public schools shut down for a week. If you own shares in companies such as utilities, while the amount of power consumed maybe less, all those in homes where they are isolated are using more or the company is still making money. We all love capital gains, but as long as the company can pay a dividend, there is still hope in the economy.

There are more questions than answers, till the next time – to raising questions.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s