EQIX vs PLD: Dividend Yield, Growth & Safety Comparison
Equinix Inc (EQIX) and Prologis, Inc. (PLD) are both in the Real Estate sector, making them natural rivals for dividend investors. PLD edges ahead on yield at 2.88% versus EQIX's 2.14%. Both stocks show similar dividend growth rates, each around 13.1% over the past five years. Both stocks carry a "Safe" dividend safety rating. EQIX is a Dividend Challenger while PLD is a Dividend Contender.
Key Metrics Comparison
| Metric | EQIX | PLD |
|---|
| Dividend Yield | 2.14% | 2.88% |
| Annual Dividend | $18.33 | $4.04 |
| 5-Year CAGR | 13.1% | 12.5% |
| Payout Ratio | 2% | 1% |
| Consecutive Years | 9 | 12 |
| Price | $954.92 | $138.93 |
Yield Comparison
Prologis, Inc. (PLD) currently yields 2.88%, which is solid for the broader market. That's 0.74% more than Equinix Inc (EQIX), which yields 2.14%. In dollar terms, PLD pays $4.04/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 PLD's 12.5%. 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%. PLD: Dividend growth is slowing — the 3-year CAGR of 7.8% trails the 5-year rate of 12.5% and the 10-year rate of 10.2%.
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. PLD'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. Both have similar payout ratios — EQIX at 2% and PLD at 1%.
Income Comparison
A $10,000 investment in PLD generates approximately $288/year in dividend income, compared to $214/year from EQIX — a difference of $74/year. At $100,000, that gap widens to $740/year.
Verdict
- Best for income: PLD
- Best for growth: EQIX
Frequently Asked Questions
Which has a higher dividend yield, EQIX or PLD?
Prologis, Inc. (PLD) has a higher dividend yield of 2.88% compared to Equinix Inc (EQIX) at 2.14%.
Is EQIX or PLD a better dividend growth stock?
Equinix Inc has the stronger dividend growth with a 5-year CAGR of 13.1%, compared to Prologis, Inc.'s 12.5%.
Which is safer for dividend income, EQIX or PLD?
Equinix Inc's dividend safety is rated "Safe" while Prologis, 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 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x.
How much income does $10,000 in EQIX vs PLD generate?
A $10,000 investment in EQIX generates approximately $214/year in dividends, while the same amount in PLD generates about $288/year.
Is EQIX or PLD a Dividend Aristocrat?
Equinix Inc is a Dividend Challenger (9 years) and Prologis, Inc. is a Dividend Contender (12 years).
Which has a lower payout ratio, EQIX or PLD?
Prologis, Inc. 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.
EQIX vs PLD: which is better for retirement income?
It depends on your priorities. PLD for current income, EQIX for dividend growth. Many retirement investors hold both for diversification.
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