Recent Buy – Iron Mountain Inc.

On July 12th I purchased 55 shares of Iron Mountain Inc. (IRM) for 30,17 $ per share plus commission. The total cost of the purchase was 1 492 €.

Overview

Iron Mountain Inc. is a global leader for storage and information management services. 

They currently serve over 225 000 customers with their huge real estate network of more than 1 400 facilities in over 50 countries. Iron Mountain Inc. stores and protects billions of protected assets, such as critical business information, highly sensitive data, and cultural and historical artifacts.

The company is also investing heavily in digital services. Last year Iron Mountain Closed acquisition of IO Data Centers US. Operations for 1,34 billion $.

About The Stock

In 2014 Iron mountain announced it was becoming a REIT, resulting in a substantially higher dividend than before. The stock has not performed very well after the REIT conversion and the most recent 6 % drop happened last week after an analyst lowered his target price to 25$/share.

In my opinion the reaction was a bit too harsh and this drop presented a decent buying opportunity. The stock is trading about 19 % below 52 week high and is starting to look attractively valued.

Some statistics about the stock:

  • Sector: Real Estate
  • AFFO/share: 3,05 $ (2018)
  • P/AFFO Ratio: 9,9
  • Yield: Pays a quarterly dividend of 0,611 $ per share which equals 8,10 % yield.
  • Payout ratio (AFFO) : Dividend payout ratio is 80 %
  • Dividend History: Iron Mountain Inc. has increased dividend for 9 consecutive years. 
  • Dividend Growth Rate: Average dividend growth rate over the last three years is 8,1 %. The growth rate will probably slow down in the future, but I would be happy even with a low single-digit growth.

Summary

Iron Mountain Inc. was already a part of my portfolio. With current yield these new shares increase my annual passive income by 119,6 €. After the purchase weight of IRM is 3,9 % of my portfolio.

Have you purchased any stocks this month? What do you think about this buy? Please share your thoughts in the comment section below!

Thanks for reading.

 

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