Iron Mountain's high dividend yield comes with risks

The narrow-moat REIT has been funding its payout with debt and will need to execute on its acquisition ambitions to support its dividend.

Eric Compton 28 November, 2017 | 6:00PM

 

 

Eric Compton: Iron Mountain is a REIT, or real estate investment trust, and pays one of the better dividend yields compared to peers. As of October 2017, the FTSE Nareit All Equity REITS index had a dividend yield of 3.85%. Compare this to the current yield of nearly 5.8% for Iron Mountain. REITs often make sense for investors in search of steady yield-generating stocks, however, Iron Mountain is not your typical REIT, and there are legitimate risks which factor into the higher yield which investors should be aware of.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Iron Mountain Inc28.33 USD-1.84

About Author

Eric Compton

Eric Compton  Eric Compton is an equity analyst for Morningstar,

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