Yahoo Finance Iron Mountain Inc's Dividend Analysis
Exploring the Sustainability and Growth of Dividends at Iron Mountain Inc (NYSE:IRM)
Iron Mountain Inc (NYSE:IRM) recently announced a dividend of $0.65 per share, scheduled for payment on July 5, 2024, with the ex-dividend date set for June 17, 2024. As investors anticipate this upcoming payout, it's an opportune time to delve into the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis will evaluate the performance and sustainability of Iron Mountain Inc's dividends.
What Does Iron Mountain Inc Do?
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Iron Mountain Inc operates primarily as a record management services provider and is structured as a Real Estate Investment Trust (REIT). The bulk of its revenue is derived from its storage solutions, complemented by various value-added services. Iron Mountain Inc serves enterprise clients predominantly in developed markets, with its business operations segmented into Global RIM Business, Global Data Center Business, and Corporate and Other Business.
A Glimpse at Iron Mountain Inc's Dividend History
Since 2010, Iron Mountain Inc has consistently paid dividends, distributed on a quarterly basis. The company has not only maintained its dividend payments but has also increased them annually since 2010, earning it the status of a dividend achiever. This accolade is reserved for companies that have consistently raised their dividends for at least the past 14 years.
Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Iron Mountain Inc's Dividend Yield and Growth
Currently, Iron Mountain Inc boasts a 12-month trailing dividend yield of 2.92% and a forward dividend yield of 2.95%, indicating expectations of increased dividend payments over the next year. Despite these figures, Iron Mountain Inc's dividend yield is near a 10-year low and is lower than 91.75% of its global competitors in the REITs industry, which may not appeal strongly to income-focused investors.
Over the past three years, Iron Mountain Inc's annual dividend growth rate was 0.80%, which increased to 1.00% per year over a five-year period. Looking at the past decade, the annual dividends per share growth rate stands at 7.10%.
Based on Iron Mountain Inc's dividend yield and five-year growth rate, the 5-year yield on cost for Iron Mountain Inc stock is approximately 3.07%.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of Iron Mountain Inc's dividends, it's crucial to consider the company's payout ratio. The dividend payout ratio of 1.41 as of March 31, 2024, suggests a potentially unsustainable dividend if earnings do not increase. However, Iron Mountain Inc's profitability rank of 7/10, coupled with consistent positive net income over the past decade, indicates robust profitability prospects.
Growth Metrics: The Future Outlook
Iron Mountain Inc's growth rank of 7 suggests a favorable growth trajectory compared to its competitors. The company's strong revenue per share and 3-year revenue growth rate of 9.10% annually outperform approximately 70.04% of global competitors. Additionally, Iron Mountain Inc's 3-year EPS growth rate of 15.20% annually and a 5-year EBITDA growth rate of 11.90% further solidify its capacity for sustaining dividends.
Conclusion
Considering Iron Mountain Inc's consistent dividend payments, growth in dividend rates, and strong financial health, the company appears well-positioned to maintain its dividend payouts. However, the relatively high payout ratio warrants close monitoring. Investors seeking to explore other high-dividend yield opportunities may benefit from using the GuruFocus High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
