Royal Caribbean Cruises Raises Quarterly Dividend 33% to $1 Per Share

Royal Caribbean Cruises has announced a 33% increase in its quarterly dividend to $1 per share, reflecting the company's strong performance and commitment to returning capital to shareholders. The dividend, payable on October 13 to shareholders of record on September 25, highlights the company's balanced capital allocation strategy, including ongoing share repurchases and funding future growth. This move follows Royal Caribbean's reinstatement of dividends in July 2024, making it one of the first cruise operators to resume payouts post-pandemic. The dividend increase coincides with a 29% rise in the company's stock price over the last quarter, driven by strong Q2 earnings, innovative expansion efforts with the new Icon Class ship, and positive market trends such as anticipated Federal Reserve rate cuts. Despite potential macroeconomic challenges, Royal Caribbean's impressive three-year total shareholder return of over 600% and its outperformance relative to the US Hospitality industry underscore investor confidence in its growth trajectory and revenue forecasts. CEO Jason Liberty emphasized that the dividend increase, along with share repurchases, demonstrates a balanced approach to capital allocation focused on shareholder value and future expansion.