A $39 Billion Empire and a 5% Dividend From Nashville's Front Porch

Live Nation Entertainment (NYSE: LYV) sits at the center of the U.S. concert industry, running Ticketmaster and putting nearly 160 million fans through its network last year. There aren't many ways for investors to own this theme directly. Live Nation is the obvious one.

It runs the concert experience from the ticket to the stage, and it's been buying and building its own venues in order to capture more of every dollar fans spend. The company now controls 460 venues globally, having tripled its real estate footprint since 2020. When people pay for live music, most of it flows through this company.

Image source: Getty Images.

The Department of Justice wrote the bull case. Its antitrust complaint alleges Ticketmaster controls roughly 80% of primary ticketing at major venues. That's the kind of market share most companies would never put in writing, but the government did it for them.

That makes Live Nation the headline story in live music. But for investors looking for a way to invest that's not so crowded, some of country music's rich history is hidden inside a hotel REIT.

Nashville's other play on live music

Ryman Hospitality Properties (NYSE: RHP) is the one most people haven't heard of, tucked inside a hotel REIT with a 5% yield. It owns a controlling stake in the Grand Ole Opry and Ryman Auditorium in Nashville, along with large-scale resort properties in major metro areas such as Orlando, Denver, Dallas, and the Washington, D.C. area.

Five of the 10 largest nongaming convention hotels in the country are Ryman properties, managed by Marriott under the Gaylord brand. The entertainment segment is smaller, but it's the faster-growing piece, anchored by stages that American music fans already know by name.

Country music isn't taking a larger share of the touring industry, and it doesn't have to. The top 10 country tours alone grossed over $1.2 billion last year. Luke Combs and George Strait each earned north of $75 million, and Strait did it in six shows.

Ryman fills the rooms, Ticketmaster fills the seats

The convention business funds the dividend. Corporate and association groups book years in advance, and that visibility is what makes the cash flow steady. The COVID-19 pandemic was the one thing that could break it, and it did. Ryman suspended its dividend in 2020. It took three years to pass the pre-pandemic high on both adjusted funds from operations (AFFO) per share and the dividend. Today those sit at $8.46 and $4.65, up 23% and 29% from 2019, respectively.

Concerts fill the seats, but owning the building is where the margins are. When Live Nation owns an arena, it controls the sponsorship, from naming rights to the brand deals inside. That revenue carries higher margins than ticket sales and has been growing as the company adds venues. With over 70% of this year's sponsorship deals already booked, management has guided for double-digit adjusted operating income growth again in 2026.

Both companies are investing real capital into physical assets that are difficult to replicate. Live Nation keeps expanding because the fans keep showing up. Ryman continues to build the convention centers that fund the payout while owning the stages that have drawn crowds for over a century. The demand for live entertainment isn't slowing down, and both are positioned to profit from it.

Bryan White has no position in any of the stocks mentioned. The Motley Fool recommends Live Nation Entertainment and Ryman Hospitality Properties. The Motley Fool has a disclosure policy.