Last week, we ran a poll to see which stock you wanted us to review based on previous requests from Wealthy Retirement readers. The winner was Iron Mountain (NYSE: IRM), a real estate investment trust, or REIT, that's focused on data management and storage. The company pays a $0.785 per share quarterly dividend, which comes out to a 3.2% yield. Is the dividend safe, or should investors consider getting off the mountain? Since the company is a REIT, we're going to use adjusted funds from operations (AFFO) as our measure of cash flow. Over the past several years, Iron Mountain's AFFO has been steadily growing. In 2024, AFFO totaled $1.3 billion, up from $1.2 billion the prior year. This year, AFFO is forecast to grow to $1.5 billion. For most companies, I want to see a payout ratio of 75% of their cash flow or less. |
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