Carnival resumes its regular quarterly dividend after temporarily halt in March 2009

Carnival resumes its regular quarterly dividend

MIAMI — Carnival Corp. said Thursday that it will again pay quarterly dividends, less than a year after the cruise operator suspended payments to boost cash.

The news sent the company’s stock up 42 cents, or 1.2 percent, to $34.73. The shares reached a new 52-week high of $35.40 earlier in the day.

Carnival, based in Miami, declared a regular quarterly dividend of 10 cents. It will pay the dividend on March 12 to shareholders of record Feb. 19.

The company suspended dividends in March last year.

Chairman and CEO Micky Arison said in a statement that Carnival has more access to capital, as economic and credit conditions have started to improve.

JP Morgan’s Kevin Milota said the resumption of dividend payments demonstrates that the company is comfortable with the amount of cash on hand, its access to capital and improving industry conditions.

The sector has struggled during the recession as travelers postponed trips or took shorter vacations. Cruise operators have been forced to slash prices, but bookings have begun to stabilize and customers are starting to spend more.

Milota maintained an “Overweight” rating.

“We believe investors will be pleased with this return of cash and prospects for future dividend increases, as Carnival’s cash flow prospects strengthen in 2011 and beyond.

The company owns Carnival and Princess cruises, the Holland America Line and other cruise lines around the globe.