Recent Buy – Iron Mountain Inc.

On March 8th I purchased 65 shares of Iron Mountain Inc. (IRM) for 34,75 $ per share plus commission. The total cost of the purchase was 2 031 €.

Overview

Iron Mountain Inc. (IRM) is a real estate investment trust (REIT). They are the 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

It is more accurate to assess the value of REIT’s with FFO (funds from operations) or AFFO (adjusted funds from operations) instead of EPS. As a result I have replaced the EPS with AFFO/share and P/E ratio with P/AFFO ratio. Here are some quick statistics about the stock:

  • Sector: Real Estate
  • AFFO/share: 3,05 $ (2018)
  • P/AFFO Ratio: 11,4
  • Yield: Pays a quarterly dividend of 0,611 $ per share which equals 7,03 % yield.
  • Payout ratio (AFFO) : Dividend payout ratio is 80 %. REIT’s usually have high payout ratios, because they are required to distribute 90 % of their taxable earnings to the shareholders.
  • 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 %, which is astonishing for a high yield stock! 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. is a new holding in my portfolio. With current yield it increases my annual passive income by 105,5 €. After the purchase weight of IRM is 2,1 % 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.

 

10 thoughts on “Recent Buy – Iron Mountain Inc.

  1. JC Reply

    I initiated a position in IRM in October last year and have been pleased so far. I like the business and their customer retention for the physical storage is truly impressive. I also like that they’re expanding some into the data center/digital storage aspect which should offer higher growth and higher margins with less physical costs. Glad to have you as a fellow shareholder.

    • Dividend Deluge Post authorReply

      I agree with you JC! They have an amazing customer retention rate and I also like that they are expanding to digital storages, which offers an opportunity for business growth.

      Thanks for stopping by!

  2. DivvyDad Reply

    Great buy, and I echo the sentiment that you’re really going to enjoy this dividend. I’ve been looking to add more myself but don’t have funds available in my IRA right now, but until then I have definitely been enjoying their payout. I know some people feel their business model is dated, but I think paper is going to be around for quite some time in regulated industries and they are positioned well for the transition to digital.

    • Dividend Deluge Post authorReply

      Thanks DivvyDad! I agree with you that the paper business is still going to be around for a long time. Now we can both enjoy their dividend payments in the future!

  3. Snugfortune Reply

    That’s a massive dividend you will collect through this investment!
    Thanks also for providing some explanations regarding REITS. Currently REITS are missing in my portfolio. Simply because I struggle to analyze this kind of businesses yet. But I’m working on it 🙂
    -SF

    • Dividend Deluge Post authorReply

      Thanks for the comment SF! It’s pretty great to have some REIT’s in portfolio, because they usually pay huge dividends.

      I have been following Brad Thomas on Seeking Alpha for a while now and he is posting great REIT analyses weekly. I think you should read some of his analyses too if you interested in REIT’s!

  4. Dividend Diplomats Reply

    Talk about adding a punch to your dividend income total right there. That IRM dividend is about to be a fat one! I added the company a lot in the fourth quarter and am very happy with the dividends that we are receiving from them. I know you will be too!

    Bert

    • Dividend Deluge Post authorReply

      Thanks Bert, I’m sure I will be very happy with the dividends from IRM too! The yield is looking really attractive at the moment.

  5. BrokeInvestor Reply

    That’s a solid buy Deluge! The yield of the company is especially impressive. I saw the company in a number of other dividend growth investors as well.
    Congrats on adding more than 100EUR to your forward annual income with a single buy!
    BI

    • Dividend Deluge Post authorReply

      Thanks BrokeInvestor! The yield is great and they also happen to pay dividends in January and July, which have been really slow months. IRM looks like a popular stock among dividend growth investors at the moment.

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