EQIX vs O: Dividend Yield, Growth & Safety Comparison
Equinix Inc (EQIX) and Realty Income Corporation (O) are both in the Real Estate sector, making them natural rivals for dividend investors. O offers a significantly higher 5.02% yield compared to EQIX's 2.14%, a gap of 2.88%. For dividend growth, EQIX leads with a 5-year CAGR of 13.1% versus O's 8.2%. Both stocks carry a "Safe" dividend safety rating. EQIX is a Dividend Challenger with 9 years of consecutive increases.
Key Metrics Comparison
| Metric | EQIX | O |
|---|
| Dividend Yield | 2.14% | 5.02% |
| Annual Dividend | $18.33 | $3.21 |
| 5-Year CAGR | 13.1% | 8.2% |
| Payout Ratio | 2% | 3% |
| Consecutive Years | 9 | 0 |
| Price | $954.92 | $65.62 |
Yield Comparison
Realty Income Corporation (O) currently yields 5.02%, which is attractive for the broader market. That's 2.88% more than Equinix Inc (EQIX), which yields 2.14%. In dollar terms, O pays $3.21/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 O's 8.2%. 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%. O: Dividend growth is accelerating — the 3-year CAGR of 11.4% exceeds the 5-year rate of 8.2% and the 10-year rate of 5.6%.
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. O's dividend safety is rated "Safe." The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x. Both have similar payout ratios — EQIX at 2% and O at 3%.
Income Comparison
A $10,000 investment in O generates approximately $502/year in dividend income, compared to $214/year from EQIX — a difference of $288/year. At $100,000, that gap widens to $2880/year.
Verdict
- Best for income: O
- Best for growth: EQIX
Frequently Asked Questions
Which has a higher dividend yield, EQIX or O?
Realty Income Corporation (O) has a higher dividend yield of 5.02% compared to Equinix Inc (EQIX) at 2.14%.
Is EQIX or O a better dividend growth stock?
Equinix Inc has the stronger dividend growth with a 5-year CAGR of 13.1%, compared to Realty Income Corporation's 8.2%.
Which is safer for dividend income, EQIX or O?
Equinix Inc's dividend safety is rated "Safe" while Realty Income Corporation 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 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x.
How much income does $10,000 in EQIX vs O generate?
A $10,000 investment in EQIX generates approximately $214/year in dividends, while the same amount in O generates about $502/year.
Is EQIX or O a Dividend Aristocrat?
Equinix Inc is a Dividend Challenger with 9 consecutive years of increases. Realty Income Corporation does not currently qualify for aristocrat status.
Which has a lower payout ratio, EQIX or O?
Equinix Inc has a lower payout ratio of 2% compared to Realty Income Corporation's 3%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EQIX vs O: which is better for retirement income?
It depends on your priorities. O for current income, EQIX for dividend growth. Many retirement investors hold both for diversification.
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