IRM vs PSA: Dividend Yield, Growth & Safety Comparison
Iron Mountain Inc (IRM) 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 IRM's 3.09%, a gap of 1.01%. For dividend growth, PSA leads with a 5-year CAGR of 10.7% versus IRM's 6.8%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | IRM | PSA |
|---|
| Dividend Yield | 3.09% | 4.11% |
| Annual Dividend | $3.07 | $12.00 |
| 5-Year CAGR | 6.8% | 10.7% |
| Payout Ratio | 6% | 1% |
| Consecutive Years | 3 | 0 |
| Price | $109.98 | $296.17 |
Yield Comparison
Public Storage (PSA) currently yields 4.11%, which is attractive for the broader market. That's 1.01% more than Iron Mountain Inc (IRM), which yields 3.09%. In dollar terms, PSA pays $12.00/share annually versus IRM's $3.07/share.
Dividend Growth
Over the past five years, PSA has grown its dividend at a 10.7% 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%. 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
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. 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 — IRM at 6% and PSA at 1%.
Income Comparison
A $10,000 investment in PSA generates approximately $411/year in dividend income, compared to $309/year from IRM — a difference of $102/year. At $100,000, that gap widens to $1020/year.
Verdict
- Best for income: PSA
- Best for growth: PSA
- Best for safety: PSA
Frequently Asked Questions
Which has a higher dividend yield, IRM or PSA?
Public Storage (PSA) has a higher dividend yield of 4.11% compared to Iron Mountain Inc (IRM) at 3.09%.
Is IRM or PSA a better dividend growth stock?
Public Storage has the stronger dividend growth with a 5-year CAGR of 10.7%, compared to Iron Mountain Inc's 6.8%.
Which is safer for dividend income, IRM or PSA?
Iron Mountain Inc's dividend safety is rated "Safe" while Public Storage 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 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
How much income does $10,000 in IRM vs PSA generate?
A $10,000 investment in IRM generates approximately $309/year in dividends, while the same amount in PSA generates about $411/year.
Which has a lower payout ratio, IRM or PSA?
Public Storage has a lower payout ratio of 1% compared to Iron Mountain Inc's 6%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
IRM vs PSA: which is better for retirement income?
It depends on your priorities. PSA for current income, PSA for dividend growth, PSA for safety. Many retirement investors hold both for diversification.
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