IRM vs O: Dividend Yield, Growth & Safety Comparison
Iron Mountain Inc (IRM) 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 IRM's 3.09%, a gap of 1.92%. For dividend growth, O leads with a 5-year CAGR of 8.2% versus IRM's 6.8%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | IRM | O |
|---|
| Dividend Yield | 3.09% | 5.02% |
| Annual Dividend | $3.07 | $3.21 |
| 5-Year CAGR | 6.8% | 8.2% |
| Payout Ratio | 6% | 3% |
| Consecutive Years | 3 | 0 |
| Price | $109.98 | $65.62 |
Yield Comparison
Realty Income Corporation (O) currently yields 5.02%, which is attractive for the broader market. That's 1.92% more than Iron Mountain Inc (IRM), which yields 3.09%. In dollar terms, O pays $3.21/share annually versus IRM's $3.07/share.
Dividend Growth
Over the past five years, O has grown its dividend at a 8.2% CAGR compared to IRM's 6.8%. 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%. 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
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. 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 — IRM at 6% and O at 3%.
Income Comparison
A $10,000 investment in O generates approximately $502/year in dividend income, compared to $309/year from IRM — a difference of $193/year. At $100,000, that gap widens to $1930/year.
Verdict
- Best for income: O
- Best for growth: O
Frequently Asked Questions
Which has a higher dividend yield, IRM or O?
Realty Income Corporation (O) has a higher dividend yield of 5.02% compared to Iron Mountain Inc (IRM) at 3.09%.
Is IRM or O a better dividend growth stock?
Realty Income Corporation has the stronger dividend growth with a 5-year CAGR of 8.2%, compared to Iron Mountain Inc's 6.8%.
Which is safer for dividend income, IRM or O?
Iron Mountain Inc's dividend safety is rated "Safe" while Realty Income Corporation is rated "Safe." The payout ratio of 6% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.2x. 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 IRM vs O generate?
A $10,000 investment in IRM generates approximately $309/year in dividends, while the same amount in O generates about $502/year.
Which has a lower payout ratio, IRM or O?
Realty Income Corporation has a lower payout ratio of 3% compared to Iron Mountain Inc's 6%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
IRM vs O: which is better for retirement income?
It depends on your priorities. O for current income, O for dividend growth. Many retirement investors hold both for diversification.
IRM Dividend Analysis | O Dividend Analysis | All Comparisons | Comparison Tool