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Why Ryman Hospitality Properties (RHP) is a Top Dividend Stock for Your Portfolio
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Ryman Hospitality Properties in Focus
Based in Nashville, Ryman Hospitality Properties (RHP - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -5.23%. The hotel and resort real estate investment trust is paying out a dividend of $1.1 per share at the moment, with a dividend yield of 4.22% compared to the REIT and Equity Trust - Other industry's yield of 4.54% and the S&P 500's yield of 1.55%.
Taking a look at the company's dividend growth, its current annualized dividend of $4.40 is up 14.3% from last year. Over the last 5 years, Ryman Hospitality Properties has increased its dividend 2 times on a year-over-year basis for an average annual increase of 0.71%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Ryman Hospitality Properties's current payout ratio is 54%. This means it paid out 54% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, RHP expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $8.20 per share, with earnings expected to increase 1.36% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, RHP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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Why Ryman Hospitality Properties (RHP) is a Top Dividend Stock for Your Portfolio
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Ryman Hospitality Properties in Focus
Based in Nashville, Ryman Hospitality Properties (RHP - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -5.23%. The hotel and resort real estate investment trust is paying out a dividend of $1.1 per share at the moment, with a dividend yield of 4.22% compared to the REIT and Equity Trust - Other industry's yield of 4.54% and the S&P 500's yield of 1.55%.
Taking a look at the company's dividend growth, its current annualized dividend of $4.40 is up 14.3% from last year. Over the last 5 years, Ryman Hospitality Properties has increased its dividend 2 times on a year-over-year basis for an average annual increase of 0.71%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Ryman Hospitality Properties's current payout ratio is 54%. This means it paid out 54% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, RHP expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $8.20 per share, with earnings expected to increase 1.36% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, RHP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).