10 Dividend Trap Stocks to Avoid in 2025

8. Vail Resorts, Inc. (NYSE:MTN)

Performance: -37.89%

Dividend Yield: 6.23%

Payout Ratio: 129.45%

Vail Resorts, Inc. (NYSE:MTN), headquartered in Colorado, operates mountain resorts and urban ski areas across North America and Australia. The company also manages a hospitality segment offering lodging, retail, and transportation services with a client base that includes recreational skiers and affluent tourists. It leverages its Epic Pass program and resort network to increase customer loyalty, thereby expanding revenue.

Shares of Vail Resorts, Inc. (NYSE:MTN) saw a downward trend in 2024, plummeting to 37.89% and raising concerns among investors and shareholders. Though there is revenue growth, the skier visits are declining. In the last two years, the skiers’ visits to the company’s resorts have declined 10.9% year-over-year. Vail Resorts, Inc. (NYSE:MTN) also reported a sluggish growth rate over the last five years. Since the recent two-year annualized revenue growth of 2.1% is even lower than the prevailing five-year trend, there is a high potential for deceleration, which would affect future revenue, particularly in 2025.

Vail Resorts, Inc. (NYSE:MTN) sports a 6.23% dividend yield. Though the yield is attractive, the payout ratio of 129.45% suggests a strain in the company’s financials. Signaling poor fiscal planning, these figures drag the company into the list of worst dividend performers for sustained income.