Vail Resorts (MTN) will reinstate its quarterly dividend in 2021 with a new payment of $0.88 per share. In 2020 MTN had suspended its quarterly dividend because of the COVID-19 pandemic.This followed a dividend hike 19.7 percent to $1.76 per share in 2019, marking the 8th consecutive year of higher dividends by the mountain resort operator at the time.
From the company's press release: "We are also pleased to announce that the Board of Directors has reinstated our quarterly dividend by declaring a cash dividend on Vail Resorts' common stock of $0.88 per share, payable on October 22, 2021 to shareholders of record on October 5, 2021. This dividend payment equates to 50% of pre-pandemic levels and reflects our continued confidence in the strong free cash flow generation and stability of our business model despite the ongoing risks associated with COVID-19. Our Board of Directors will continue to closely monitor the economic and public health outlook on a quarterly basis to assess the level of our quarterly dividend going forward."
The new annual dividend rate of $3.52 per share will yield 1.0% at a stock price of $348 for Vail Resorts. The next ex-dividend date for the quarterly dividend of 88 cents by MTN is October 4, 2021.
Vail Resorts, Inc. is a mountain resort operator. Vail Resorts' subsidiaries operate mountain resorts and urban ski areas, including Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in British Columbia, Canada; Perisher in Australia; Wilmot Mountain in Wisconsin; Afton Alps in Minnesota and Mt. Brighton in Michigan. Vail Resorts owns and/or manages a collection of casually elegant hotels under the RockResorts brand, as well as the Grand Teton Lodge Company in Jackson Hole, Wyoming. The company had paid a dividend every year since 2011 prior to the suspension announced in 2020 because of the COVID-19 pandemic.