There’s a fresh breeze blowing through Vail Resorts (NYSE: MTN), and here’s why it might be the perfect time to grab a chairlift pass on this stock.
First up, let’s talk yield: Vail Resorts offers a 5.6% dividend yield, paying $2.22 per share each quarter and $8.88 annually. That yield is considerably higher than the average U.S. stock and among the top in its sector.
While the payout ratio is high, around 114% of earnings in cash terms, the company is covering it largely through cash flow, not borrowing. Plus, the dividend has grown four years in a row, signaling management’s confidence
Their earnings also tell a solid story.
In Q3 of fiscal 2025, Vail Resorts beat expectations with $10.54 EPS versus $10.17 consensus, driven by tight cost control, despite revenue getting hit slightly, $1.30B vs. $1.31B est. They also reaffirmed full-year net income guidance ($264M–$298M) and EBITDA ($831M–$851M).
All that translates to healthy margins, though below pre-pandemic peaks, but steady at 28–31% resort EBITDA margins.
It gets better. Their shareholder yield, which is the combined return from dividends and buybacks, is around 7.5%, with modest stock buybacks (~1.7%). On top of that, analysts see another ~13% upside from current levels.
So why is Vail flexing its muscles now?
Well, even as warmer winters and climate-led variability challenge the ski industry, summer activities and the Epic Pass ecosystem (including lodging, biking, and golf) keep cash flows alive.
Also, with former long‑time CEO Rob Katz back at the helm, Vail is doubling down on marketing, infrastructure investment, AI tools, and cost efficiencies, elements that analysts from Bank of America highlight as future catalysts.
And after poor snow seasons, any rebound would further boost visitation and revenues.
But before you leap, you should consider these risks.
Its stock has a high payout ratio. At 114% of earnings, any dip in cash flow could pressure the dividend. Weather volatility, like poor snowfall, still bites, although revenue diversification helps.
Finally, and very importantly, they recently priced $500M in 2030 notes. That makes debt service costs something to track.
Vail Resorts is giving investors a rare combo of solid income and tangible growth. You’re getting nearly 6% yield, strong operational performance, and upside potential if the ski season recovers, all wrapped in a brand that dominates its niche.
In a high-rate world where dividend stocks often disappoint, Vail stands out. It’s a well-rounded play: income, resilience, and capital appreciation, plus management that knows what they’re doing.
If you’re looking to add reliable, yield-backed ski-resort exposure to your portfolio, Vail Resorts is flashing every green light. Happy skiing, both on slopes and in your portfolio.
