Vail Resorts' $2.22 dividend goes ex-dividend as payout outruns earnings
The quarterly payment, payable Oct. 27 to shareholders of record Oct. 8, annualizes to $8.88 for a yield near 6.4 percent, even as the trailing payout ratio tops 200 percent after a historically weak winter.
Vail Resorts will pay its $2.22 quarterly dividend on Oct. 27 to shareholders of record as of Oct. 8, the company said in its fiscal 2026 results announcement. The payment annualizes to $8.88 per share, a dividend yield of about 6.4 percent at recent prices.
The payout lands with the company's dividend running ahead of its earnings. MarketBeat puts the payout ratio at 214.49 percent on a trailing basis, meaning the company cannot currently cover the dividend with earnings alone. Vail Resorts reported fiscal 2026 net income of $147.5 million, down from $280 million in fiscal 2025, and Resort Reported EBITDA of $745.7 million, down 11.7 percent including $11 million of one-time costs.
The dividend was declared Sept. 24, according to MarketBeat's dividend history, which records the same $2.22 quarterly payment for each quarter of 2026. The Oct. 27 payment is the fourth of the calendar year.
A recovery guide for fiscal 2027
For fiscal 2027, management guided to net income of $158 million to $233 million and Resort Reported EBITDA of $805 million to $865 million, including about $14 million of one-time costs. The midpoint of the EBITDA guide implies a Resort EBITDA margin of 26.9 percent, or 27.3 percent excluding those costs, according to ad-hoc-news.
This past winter was one of the most challenging winters in history across the western U.S. for the ski industry, which negatively impacted financial performance for the year.
Rob Katz, chief executive officer, Vail Resorts (company announcement)
Pass demand is the open question for the new fiscal year. Through Sept. 18, pass product unit sales were 12 percent lower than in the comparable prior-year period, with sales dollars down 6 percent, the company said. Fiscal 2026 skier visits fell 13.4 percent, though total lift revenue declined only 3.5 percent as pass revenue rose 3.9 percent.
The stock traded at $145.89 on Oct. 7, about 10.7 percent below its 52-week high of $163.34, with a market capitalization of about $5.2 billion, according to ad-hoc-news. Analyst views remain mixed: JPMorgan raised its price target to $150 while keeping a neutral rating, while Deutsche Bank cut to $132, Wells Fargo set $130, Stifel reduced to $157 and Morgan Stanley cut to $142, according to American Banking News.
The company said its fiscal 2027 guidance assumes normal weather and positive free cash flow after capital spending and dividends, according to ad-hoc-news, a company projection rather than a verified result.
The Vail Tribune is an independent publication with no affiliation to Vail Resorts.
