AMT vs EQIX: Dividend Yield, Growth & Safety Comparison
American Tower Corp /Ma/ (AMT) and Equinix Inc (EQIX) are both in the Real Estate sector, making them natural rivals for dividend investors. AMT offers a significantly higher 3.76% yield compared to EQIX's 2.14%, a gap of 1.63%. For dividend growth, EQIX leads with a 5-year CAGR of 13.1% versus AMT's 6.9%. Both stocks carry a "Safe" dividend safety rating. AMT is a Dividend Contender while EQIX is a Dividend Challenger.
Key Metrics Comparison
| Metric | AMT | EQIX |
|---|
| Dividend Yield | 3.76% | 2.14% |
| Annual Dividend | $6.72 | $18.33 |
| 5-Year CAGR | 6.9% | 13.1% |
| Payout Ratio | 1% | 2% |
| Consecutive Years | 14 | 9 |
| Price | $190.81 | $954.92 |
Yield Comparison
American Tower Corp /Ma/ (AMT) currently yields 3.76%, which is solid for the broader market. That's 1.63% more than Equinix Inc (EQIX), which yields 2.14%. In dollar terms, AMT pays $6.72/share annually versus EQIX's $18.33/share.
Dividend Growth
Over the past five years, EQIX has grown its dividend at a 13.1% CAGR compared to AMT's 6.9%. AMT: Dividend growth is slowing — the 3-year CAGR of 2.7% trails the 5-year rate of 6.9% and the 10-year rate of 13.5%. EQIX: Dividend growth is accelerating — the 3-year CAGR of 13.8% exceeds the 5-year rate of 13.1% and the 10-year rate of 11.6%.
Dividend Safety
AMT's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x. EQIX's dividend safety is rated "Safe." The payout ratio of 2% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.6x. Both have similar payout ratios — AMT at 1% and EQIX at 2%.
Income Comparison
A $10,000 investment in AMT generates approximately $376/year in dividend income, compared to $214/year from EQIX — a difference of $162/year. At $100,000, that gap widens to $1620/year.
Verdict
- Best for income: AMT
- Best for growth: EQIX
Frequently Asked Questions
Which has a higher dividend yield, AMT or EQIX?
American Tower Corp /Ma/ (AMT) has a higher dividend yield of 3.76% compared to Equinix Inc (EQIX) at 2.14%.
Is AMT or EQIX a better dividend growth stock?
Equinix Inc has the stronger dividend growth with a 5-year CAGR of 13.1%, compared to American Tower Corp /Ma/'s 6.9%.
Which is safer for dividend income, AMT or EQIX?
American Tower Corp /Ma/'s dividend safety is rated "Safe" while Equinix Inc is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x. The payout ratio of 2% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.6x.
How much income does $10,000 in AMT vs EQIX generate?
A $10,000 investment in AMT generates approximately $376/year in dividends, while the same amount in EQIX generates about $214/year.
Is AMT or EQIX a Dividend Aristocrat?
American Tower Corp /Ma/ is a Dividend Contender (14 years) and Equinix Inc is a Dividend Challenger (9 years).
Which has a lower payout ratio, AMT or EQIX?
American Tower Corp /Ma/ has a lower payout ratio of 1% compared to Equinix Inc's 2%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AMT vs EQIX: which is better for retirement income?
It depends on your priorities. AMT for current income, EQIX for dividend growth. Many retirement investors hold both for diversification.
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