Seeking Yield? Don't Overlook This Nontraditional REIT
Iron Mountain's dividend yield is over 7% and we think the firm has a credible path to sustain, or even grow, its payout.
Eric Compton: Iron Mountain is a nontraditional REIT which does not screen well and which operates in a niche business without any true peers. We think this can lead to opportunities in the stock as it can be easily overlooked by investors.
Iron Mountain primarily provides document storage for enterprises, which is an ostensibly unattractive business. We think enterprise document storage is likely to be around for decades to come, even with the progress of digital storage technology over the last 50 years. We also believe Iron Mountain possesses a narrow moat, based on the presence of switching costs, as the firm possesses a 98% retention rate; intangible assets, based on existing relationships and unmatched retrieval accuracy for important client assets; and efficient scale within the large enterprise storage arena, where we estimate the firm has a near monopolylike market share.
Eric Compton does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.