Ryman Hospitality's Dividend Stability: A High-Yield Dilemma for Dividend Growth Investors

Ryman Hospitality Properties (RHP) has long been a fixture in the high-yield dividend landscape, offering investors a compelling 4.77% yield as of September 2025Ryman Hospitality Properties (RHP) Dividend History, Dates & Yield^[4]. The company's recent declaration of a $1.15 per share quarterly dividend for Q3 2025, payable on October 15, 2025Ryman Hospitality Properties' 371% Dividend Payout Ratio Raises ...^[1], underscores its commitment to shareholder returns. However, for dividend growth investors, the question remains: Can RHP sustain—and grow—this payout in a high-yield environment without compromising its financial health?

A High-Yield Attraction with Structural Risks

RHP's dividend yield significantly outpaces the S&P 500's average of 2.5%, making it a magnet for income-focused investors. This appeal is bolstered by the company's portfolio of luxury hotels and entertainment assets, including the Gaylord resorts and the Grand Ole Opry, which generate stable cash flowsRyman Hospitality Properties, Inc. Declares Third Quarter Cash Dividend of $1.15 per Share^[5]. Yet, beneath the surface, structural challenges threaten the dividend's longevity.

For Q2 2025, RHP's dividend payout ratio reached 102.7% of diluted earnings per share and a staggering 371% of operating free cash flow (OFCF)Ryman Hospitality Properties' 371% Dividend Payout Ratio Raises ...^[1]. This means the company is paying out more in dividends than it generates in operating cash flow, a red flag for sustainability. While RHP's trailing-12-month payout ratio of 93.4% appears healthierRyman Hospitality Properties (RHP) Dividend History, Dates & Yield^[3], it still exceeds the Real Estate sector's average of 158.7%, indicating aggressive distribution policies.

Debt-Fueled Dividends: A Double-Edged Sword

RHP's ability to maintain its dividend hinges on its access to external financing. In 2025 alone, the company has issued $625 million in senior notes and $276 million in common stock to fund dividends and growth initiatives, such as the $862 million acquisition of the JW Marriott Desert RidgeRyman Hospitality Properties' 371% Dividend Payout Ratio Raises ...^[1]. As of June 30, 2025, RHP's net debt stood at $3.53 billion, with a debt-to-EBITDA ratio of 5.48Ryman Hospitality Properties (FRA:4RH) Debt-to-EBITDA^[2]. While this leverage is manageable in the short term (no debt maturities until 2027), it raises concerns about long-term flexibility.

Analysts remain divided. Six firms have issued “buy” or “overweight” ratings as of late 2025Ryman Hospitality Properties, Inc. Declares Third Quarter Cash Dividend of $1.15 per Share^[5], citing RHP's premium asset portfolio and undervalued stock (DCF analysis suggests an intrinsic value of $190.54 per share vs. $99.29 currentlyRyman Hospitality Properties (RHP) Dividend History, Dates & Yield^[3]). However, the same analysts caution that RHP's dividend is vulnerable to rising borrowing costs or a slowdown in its hospitality and entertainment segments.

Historical Volatility and Growth Prospects

RHP's dividend history reveals a pattern of volatility. After a 10% increase in late 2023 (raising the payout to $1.10 per shareRyman Hospitality Properties (RHP) Dividend History, Dates & Yield^[3]), the company maintained its 2025 rate at $1.15 per share. Yet, this stability masks prior turbulence: A 150% surge in 2022 was followed by an 89.47% drop in the subsequent quarterRyman Hospitality Properties (RHP) Dividend History, Dates & Yield^[3]. For dividend growth investors, this inconsistency is a critical drawback. The company has not raised its dividend in three years and even faced a 54% decline in its annualized payout over that periodRyman Hospitality Properties (FRA:4RH) Debt-to-EBITDA^[2].

To better understand the performance implications of these dividend fluctuations, a backtest of past dividend announcements from 2022 to now provides valuable context.

Implications for Dividend Growth Investors

In a high-yield environment, RHP's 4.77% yield is undeniably attractive. However, dividend growth investors must weigh this against the risks of a payout ratio that exceeds operating cash flow and a capital structure reliant on debt and equity issuance. While RHP's management emphasizes returning capital to shareholdersRyman Hospitality Properties, Inc. Declares Third Quarter Cash Dividend of $1.15 per Share^[5], the company's financial metrics suggest this strategy is not self-sustaining.

Investors should consider RHP as a speculative high-yield play rather than a core holding for long-term dividend growth. The stock's undervaluation and premium assets offer upside potential, but its dividend sustainability depends on RHP's ability to balance aggressive capital allocation with operational efficiency. As the company heads into its Q3 2025 earnings call on November 4, 2025Ryman Hospitality Properties' 371% Dividend Payout Ratio Raises ...^[1], closer scrutiny of its cash flow trends and debt management will be essential.