EQIX vs PSA: Dividend Yield, Growth & Safety Comparison
Equinix Inc (EQIX) and Public Storage (PSA) are both in the Real Estate sector, making them natural rivals for dividend investors. PSA offers a significantly higher 4.11% yield compared to EQIX's 2.14%, a gap of 1.97%. For dividend growth, EQIX leads with a 5-year CAGR of 13.1% versus PSA's 10.7%. Both stocks carry a "Safe" dividend safety rating. EQIX is a Dividend Challenger with 9 years of consecutive increases.
Key Metrics Comparison
| Metric | EQIX | PSA |
|---|
| Dividend Yield | 2.14% | 4.11% |
| Annual Dividend | $18.33 | $12.00 |
| 5-Year CAGR | 13.1% | 10.7% |
| Payout Ratio | 2% | 1% |
| Consecutive Years | 9 | 0 |
| Price | $954.92 | $296.17 |
Yield Comparison
Public Storage (PSA) currently yields 4.11%, which is attractive for the broader market. That's 1.97% more than Equinix Inc (EQIX), which yields 2.14%. In dollar terms, PSA pays $12.00/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 PSA's 10.7%. 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%. PSA: Dividend growth is slowing — the 3-year CAGR of 0.0% trails the 5-year rate of 10.7% and the 10-year rate of 5.7%.
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. PSA'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 0.8x. Both have similar payout ratios — EQIX at 2% and PSA at 1%.
Income Comparison
A $10,000 investment in PSA generates approximately $411/year in dividend income, compared to $214/year from EQIX — a difference of $197/year. At $100,000, that gap widens to $1970/year.
Verdict
- Best for income: PSA
- Best for growth: EQIX
Frequently Asked Questions
Which has a higher dividend yield, EQIX or PSA?
Public Storage (PSA) has a higher dividend yield of 4.11% compared to Equinix Inc (EQIX) at 2.14%.
Is EQIX or PSA a better dividend growth stock?
Equinix Inc has the stronger dividend growth with a 5-year CAGR of 13.1%, compared to Public Storage's 10.7%.
Which is safer for dividend income, EQIX or PSA?
Equinix Inc's dividend safety is rated "Safe" while Public Storage 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 0.8x.
How much income does $10,000 in EQIX vs PSA generate?
A $10,000 investment in EQIX generates approximately $214/year in dividends, while the same amount in PSA generates about $411/year.
Is EQIX or PSA a Dividend Aristocrat?
Equinix Inc is a Dividend Challenger with 9 consecutive years of increases. Public Storage does not currently qualify for aristocrat status.
Which has a lower payout ratio, EQIX or PSA?
Public Storage 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 PSA: which is better for retirement income?
It depends on your priorities. PSA for current income, EQIX for dividend growth. Many retirement investors hold both for diversification.
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