EQIX vs IRM: Dividend Yield, Growth & Safety Comparison
Equinix Inc (EQIX) and Iron Mountain Inc (IRM) are both in the Real Estate sector, making them natural rivals for dividend investors. IRM edges ahead on yield at 3.09% versus EQIX's 2.14%. For dividend growth, EQIX leads with a 5-year CAGR of 13.1% versus IRM's 6.8%. Both stocks carry a "Safe" dividend safety rating. EQIX is a Dividend Challenger with 9 years of consecutive increases.
Key Metrics Comparison
| Metric | EQIX | IRM |
|---|
| Dividend Yield | 2.14% | 3.09% |
| Annual Dividend | $18.33 | $3.07 |
| 5-Year CAGR | 13.1% | 6.8% |
| Payout Ratio | 2% | 6% |
| Consecutive Years | 9 | 3 |
| Price | $954.92 | $109.98 |
Yield Comparison
Iron Mountain Inc (IRM) currently yields 3.09%, which is solid for the broader market. That's 0.95% more than Equinix Inc (EQIX), which yields 2.14%. In dollar terms, IRM pays $3.07/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 IRM's 6.8%. 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%. 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
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. 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 — EQIX at 2% and IRM at 6%.
Income Comparison
A $10,000 investment in IRM generates approximately $309/year in dividend income, compared to $214/year from EQIX — a difference of $95/year. At $100,000, that gap widens to $950/year.
Verdict
- Best for income: IRM
- Best for growth: EQIX
- Best for safety: EQIX
Frequently Asked Questions
Which has a higher dividend yield, EQIX or IRM?
Iron Mountain Inc (IRM) has a higher dividend yield of 3.09% compared to Equinix Inc (EQIX) at 2.14%.
Is EQIX or IRM a better dividend growth stock?
Equinix Inc has the stronger dividend growth with a 5-year CAGR of 13.1%, compared to Iron Mountain Inc's 6.8%.
Which is safer for dividend income, EQIX or IRM?
Equinix Inc's dividend safety is rated "Safe" while Iron Mountain Inc is rated "Safe." The payout ratio of 2% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.6x. 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 EQIX vs IRM generate?
A $10,000 investment in EQIX generates approximately $214/year in dividends, while the same amount in IRM generates about $309/year.
Is EQIX or IRM a Dividend Aristocrat?
Equinix Inc is a Dividend Challenger with 9 consecutive years of increases. Iron Mountain Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, EQIX or IRM?
Equinix Inc has a lower payout ratio of 2% compared to Iron Mountain Inc's 6%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EQIX vs IRM: which is better for retirement income?
It depends on your priorities. IRM for current income, EQIX for dividend growth, EQIX for safety. Many retirement investors hold both for diversification.
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