Royal Caribbean Cruises (RCL) said on Tuesday it would discontinue its regular quarterly common stock dividend, which had been 15 cents a share per quarter.

Chairman and CEO Richard D. Fain said the Miami company recognized the importance of the dividend, but said ``the best way to reward all of our shareholders is to continue to position the company for future earnings growth and enhance our liquidity during this period of heightened economic and financial market volatility.''

The company said dropping the dividend fits with its other cost-saving moves, such as reducing its operating costs, administrative expenses, and capital spending. The company said it expects to save about $125 million per year by suspending the dividend.

The company said it has lined up financing commitments or government guarantees for all of its remaining ship orders.

Royal Caribbean shares fell 33 cents, or 3.4 percent, to close at $9.50 Tuesday.

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