Understanding the Next Dividend Payout for Vail Resorts Inc (MTN, Financial)
Vail Resorts Inc (MTN) recently announced a dividend of $2.06 per share, payable on 2024-01-09, with the ex-dividend date set for 2023-12-22. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Vail Resorts Inc's dividend performance and assess its sustainability.
What Does Vail Resorts Inc Do?
Vail Resorts Inc is a leading resorts and casinos company that specializes in mountain resorts and ski areas. With three primary business segments—Mountain, Lodging, and Real Estate—the company caters to a wide range of leisure activities and accommodation services. Its mountain resorts are renowned for winter sports like skiing and snowboarding, as well as summer activities such as hiking and mountain biking. Vail Resorts Inc's Lodging segment provides hospitality services, while its Real Estate division focuses on property development and leasing, primarily in proximity to its resorts. Predominantly, the company's revenue streams are concentrated within the United States.
A Glimpse at Vail Resorts Inc's Dividend History
Vail Resorts Inc has upheld a steadfast dividend payment history since 2011, with dividends issued quarterly to shareholders. This regular distribution reflects the company's commitment to returning value to its investors. To better understand the trend, investors can refer to the chart illustrating the annual Dividends Per Share, which tracks Vail Resorts Inc's dividend performance over time.
Breaking Down Vail Resorts Inc's Dividend Yield and Growth
Vail Resorts Inc currently boasts a trailing dividend yield of 3.64% and a forward dividend yield of 3.72%. This forward-looking yield indicates an anticipated increase in dividend payments over the next 12 months. Additionally, the company has experienced an impressive annual dividend growth rate of 14.60% over the past three years. When considering the dividend yield and five-year growth rate, the 5-year yield on cost for Vail Resorts Inc stock stands at approximately 3.64%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Vail Resorts Inc's dividend is often gauged by examining the dividend payout ratio. As of October 31, 2023, the ratio is 1.46, which could raise concerns about the long-term sustainability of the company's dividend. However, Vail Resorts Inc's profitability rank is an encouraging 8 out of 10, signifying strong earnings potential compared to its industry peers. The company's consistent positive net income over the past decade further reinforces its profitability status.
Growth Metrics: The Future Outlook
Vail Resorts Inc's growth prospects are also a critical factor for dividend sustainability. With a growth rank of 8 out of 10, the company's growth trajectory appears robust. Its revenue per share and a 3-year revenue growth rate of 14.80% annually outperform 84.03% of global competitors, indicating a strong revenue model. The company's 3-year EPS growth rate of 35.10% annually surpasses 72.78% of global competitors, showcasing its earning growth capacity. However, the 5-year EBITDA growth rate of -2.10% is less impressive but still outperforms 39.51% of global competitors.
Next Steps
In conclusion, while Vail Resorts Inc's dividend payments and growth rate present an attractive proposition, the high payout ratio may raise questions about dividend sustainability. However, the company's strong profitability and growth metrics offer reassurance about its financial health. Investors should consider these factors in the context of their investment strategy and risk appetite. For those seeking high-dividend yield opportunities, GuruFocus Premium provides a valuable tool with the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
