Earning $100 a Month from Ryman Hospitality Properties: A Dividend Strategy in a High-Debt REIT

For investors seeking passive income, Ryman Hospitality Properties (RHP) has long been a tantalizing prospect. The company, which operates a portfolio of Gaylord hotels and entertainment venues, offers a dividend yield of approximately 4.5–4.7% as of July 2025, making it a compelling candidate for those aiming to build a regular income stream. But in a market where high-debt REITs are often scrutinized for their stability, the question remains: How much would it take to earn $100 a month from RHP, and is it a prudent bet?

The Math: Calculating the Investment Required

To generate $100 per month in dividends, an investor needs annualized income of $1,200. Given RHP's current yield of roughly 4.61% (based on a share price of $99.73 and an annualized dividend of $4.55), the required investment can be calculated as follows:
$$ \text{Investment} = \frac{\text{Desired Annual Income}}{\text{Dividend Yield}} = \frac{1,200}{0.0461} \approx \$26,000 $$

This means an investor would need to commit approximately $26,000 to RHP stock to achieve $100 in monthly dividends. While this is a modest sum for a high-yield strategy, the feasibility hinges on RHP's ability to sustain its payout—and its capacity to manage a debt load that remains a point of contention.

The Allure of High Yield, the Shadow of Debt

RHP's dividend yield, though below the Real Estate sector average of 6.61%, is still attractive in a low-yield environment. The company's payout ratio of 93.4%—significantly lower than the sector average of 161.1%—suggests it is retaining earnings for reinvestment or debt management. However, its leverage remains a concern. As of July 2025, RHP's debt-to-EBITDA ratio stands at 4.55, with projections of 5.0x in 2025 and a gradual improvement to below 5.0x in 2026. Analysts at S&P Global note that while the company's interest coverage remains strong (mid-3x EBITDA), its capital expenditures and ongoing renovations at properties like Gaylord Opryland could temporarily disrupt RevPAR and strain liquidity.

Analyst Sentiment: A "Buy" with Caveats

Despite the debt concerns, RHP has attracted a strong consensus from analysts. Eight firms have issued "Buy" ratings, with an average 12-month price target of $112.90—implying a 12.7% upside from current levels. Wells Fargo and Truist have recently adjusted their targets, reflecting both optimism and caution. The stock's beta of 1.57 underscores its volatility, a double-edged sword for income-focused investors.

Yet, RHP's recent first-quarter results offer reassurance. The company reported a 11.2% year-over-year revenue increase, with occupancy rates rising to 69.7% and RevPAR up 10.2%. Strong bookings for 2026 and 2027 suggest long-term demand, though near-term macroeconomic uncertainty has led to a more conservative outlook for 2025.

The Risks and Rewards of a High-Debt REIT

RHP's business model is inherently cyclical, reliant on group bookings for conventions and events. While this has historically provided resilience—groups are less sensitive to economic downturns than leisure travel—the company's heavy debt load amplifies risk. A sharp rise in interest rates or a prolonged economic slowdown could pressure its credit metrics.

However, RHP's proactive capital management and a $350–$450 million 2025 renovation budget signal confidence in long-term value creation. These projects, while disruptive in the short term, are expected to enhance RevPAR and justify the current yield.

Final Verdict: A Strategic Bet for Income-Seekers

For investors with a moderate risk tolerance and a focus on income, RHP offers a compelling case. The $26,000 investment required to generate $100/month is feasible, especially given the stock's "Buy" rating and improving fundamentals. However, diversification is key. Pairing RHP with lower-volatility assets or REITs with stronger balance sheets can mitigate the risks of its high-debt profile.

In conclusion, RHP is not without its challenges, but its dividend yield, analyst optimism, and strategic capital plans make it a viable option for those seeking to build a passive income stream. As always, due diligence is required—monitoring debt trends and economic conditions will be critical to ensuring this strategy remains robust in the years ahead.