Riding the RV Wave: Camping World’s Dividend Strength in a Thriving Market

The recreational vehicle (RV) market is surging, and Camping World (NYSE: CWH) stands at the helm as the industry’s undisputed leader. With a 278% year-over-year jump in Q1 2025 Adjusted EBITDA, robust dividend consistency, and strategic acquisitions fortifying its cash flow, Camping World presents a rare opportunity to capture income and growth in a resilient sector. For income-focused investors, the June 13 ex-date marks a pivotal moment to secure a 3.2% dividend yield while capitalizing on secular tailwinds. Here’s why this is a buy signal you can’t afford to miss.

Dividend Reliability Amid RV Demand Surge

Camping World has delivered 12 consecutive quarters of dividend payments, maintaining a payout ratio below 40% even during challenging periods. This discipline is critical: in Q1 2025, despite a net loss of $24.7 million, Adjusted EBITDA soared to $31.1 million, a nearly 4x increase from last year. The dividend’s sustainability is underpinned by:
- Margin Expansion: Gross margins hit 30.4%, with used vehicle margins rising 104 basis points to 18.6%.
- Cost Discipline: SG&A expenses are projected to improve by 600–700 basis points as a percentage of gross profit, freeing cash for payouts.

Operational Strength: Q1 EBITDA and Lazydays Acquisitions

The Q1 2025 results reveal a company primed for sustained growth:
- Unit Sales Growth: Used vehicle sales surged 30.3%, driving 9.8% total same-store sales growth. Management highlighted mid-teens April used unit growth, signaling momentum.
- Strategic Footprint Expansion: The acquisition of five Lazydays locations—including key sites in RV manufacturing hubs like Elkhart, Indiana—bolsters Camping World’s control over high-demand OEM brands. These deals also strengthen its Good Sam services network, a cash cow offering protection plans, insurance, and roadside assistance to 1.2 million members.

The exclusion of underperforming Portland and Council Bluffs locations underscores Camping World’s rigorous site selection criteria, ensuring acquired assets enhance profitability. Meanwhile, inventory turnover improved across new and used vehicles, reducing liquidity risks.

Risks vs. Tailwinds: Balancing the Equation

Risks:
- Economic Sensitivity: RVs are discretionary purchases; a recession could dampen demand.
- Inventory Management: Rising used vehicle sales require precise stock control to avoid write-downs.

Tailwinds:
- Market Share Gains: Camping World now operates in 43 states, with a 209-store network optimized for scale.
- Cyclical Resilience: The RV market has historically outperformed broader retail sectors during recoveries. Post-pandemic demand for outdoor adventures remains elevated, with Camping World’s online-to-offline integration capturing both digital and in-person shoppers.
- Debt Reduction: Floor plan interest fell 34% in Q1, easing pressure on cash flow.

The Case for Immediate Action: June 13 Ex-Date

With the June 13 ex-date approaching, investors have a narrow window to lock in Camping World’s dividend. Here’s why now is ideal:
1. Valuation Advantage: At a forward P/E of 12.5x (vs. the sector’s 15x average), Camping World is undervalued despite its growth trajectory.
2. Dividend Upside: Management’s focus on SG&A cuts and margin optimization suggests dividend hikes could follow profitability improvements.
3. Sector Leadership: The company’s Good Sam brand dominance and nationwide footprint insulate it from niche competitors.

Conclusion: A Secure Income Play with Growth Legs

Camping World is a best-of-both-worlds investment: it offers a reliable dividend yield in a high-growth sector with secular demand tailwinds. The June 13 ex-date isn’t just a date—it’s a strategic entry point to own a company primed to capitalize on America’s love affair with outdoor adventure.

Act now: Secure your position before the ex-date to capture income and ride the RV boom.

Disclosure: This analysis is for informational purposes only. Consult a financial advisor before making investment decisions.