DLR vs IRM: Dividend Yield, Growth & Safety Comparison
Digital Realty Trust, Inc. (DLR) and Iron Mountain Inc (IRM) are both in the Real Estate sector, making them natural rivals for dividend investors. Both stocks offer similar yields — DLR at 2.83% and IRM at 3.09%. For dividend growth, IRM leads with a 5-year CAGR of 6.8% versus DLR's 1.3%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | DLR | IRM |
|---|
| Dividend Yield | 2.83% | 3.09% |
| Annual Dividend | $4.88 | $3.07 |
| 5-Year CAGR | 1.3% | 6.8% |
| Payout Ratio | 1% | 6% |
| Consecutive Years | 0 | 3 |
| Price | $180.51 | $109.98 |
Yield Comparison
Iron Mountain Inc (IRM) currently yields 3.09%, which is solid for the broader market. That's 0.26% more than Digital Realty Trust, Inc. (DLR), which yields 2.83%. In dollar terms, IRM pays $3.07/share annually versus DLR's $4.88/share.
Dividend Growth
Over the past five years, IRM has grown its dividend at a 6.8% CAGR compared to DLR's 1.3%. DLR: Dividend growth is slowing — the 3-year CAGR of 0.0% trails the 5-year rate of 1.3% and the 10-year rate of 3.7%. IRM: Dividend growth is accelerating — the 3-year CAGR of 12.6% exceeds the 5-year rate of 6.8% and the 10-year rate of 5.4%.
Dividend Safety
DLR'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 0.7x. IRM's dividend safety is rated "Safe." The payout ratio of 6% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.2x. Both have similar payout ratios — DLR at 1% and IRM at 6%.
Income Comparison
A $10,000 investment in IRM generates approximately $309/year in dividend income, compared to $283/year from DLR — a difference of $26/year. At $100,000, that gap widens to $260/year.
Verdict
- Best for income: IRM
- Best for growth: IRM
- Best for safety: DLR
Frequently Asked Questions
Which has a higher dividend yield, DLR or IRM?
Iron Mountain Inc (IRM) has a higher dividend yield of 3.09% compared to Digital Realty Trust, Inc. (DLR) at 2.83%.
Is DLR or IRM a better dividend growth stock?
Iron Mountain Inc has the stronger dividend growth with a 5-year CAGR of 6.8%, compared to Digital Realty Trust, Inc.'s 1.3%.
Which is safer for dividend income, DLR or IRM?
Digital Realty Trust, Inc.'s dividend safety is rated "Safe" while Iron Mountain Inc is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.7x. The payout ratio of 6% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.2x.
How much income does $10,000 in DLR vs IRM generate?
A $10,000 investment in DLR generates approximately $283/year in dividends, while the same amount in IRM generates about $309/year.
Which has a lower payout ratio, DLR or IRM?
Digital Realty Trust, Inc. has a lower payout ratio of 1% compared to Iron Mountain Inc's 6%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DLR vs IRM: which is better for retirement income?
It depends on your priorities. IRM for current income, IRM for dividend growth, DLR for safety. Many retirement investors hold both for diversification.
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