Iron Mountain's High Yield Isn't Worth the Risk

Real estate investment trust (REIT) Iron Mountain (NYSE: IRM) has an 8%-plus dividend yield, which is pretty eye-catching at a time when the broader market's yield is below 2%. But how safe is the dividend backing that fat yield? The answer isn't as clear-cut as you think.

Here's the good and bad of the situation and why, at the end of the day, Iron Mountain's yield isn't likely to be worth the risk for most investors. 

Iron Mountain is in a class by itself today because no other real estate investment trust does what it does, which makes peer comparisons impossible. However, the company's storage-focused business, while unique, is very resilient. Effectively, its core business is to put paper documents that need to be retained into its facilities so its customers don't have to clutter up their own properties with them.

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Source Fool.com