Dividend stocks will not help investors grow rich fast. However, because only the finest businesses are able to increase their payouts to shareholders over time, dividend equities are an investment vehicle with a good chance of assisting investors in building generational wealth.
Here are two real estate investment trusts that seem to be good buys for investors looking to create long-term prosperity.
1. Iron Mountain
Iron Mountain, with 1,460 facilities in 89 countries possessing 740 million cubic feet of worldwide physical storage capacity, is a major records management and storage firm. The firm is so entrenched in its field that it is trusted by 95% of Fortune 1000 companies.
In 2020, the company will continue to consolidate its records management and storage operations in order to protect against adverse changes in real estate or economic cycles. Iron Mountain’s revenue was $4.5 billion in 2021, with over 60% coming from its core business of records management and storage.
Iron Mountain’s main business is highly dependable, with records typically remaining within its facilities for 15 years. Because companies are required to save certain papers permanently, such as business licenses and permissions, as well as types of intellectual property granted by the federal government, such as patents, trademarks, and copyrights, this is why Iron Mountain’s client retention rate is exceptionally high at 98%.
Iron Mountain currently has 1,300 of its total 225,000 customers using data centers for digitalized records storage. This is a huge growth opportunity for Iron Mountain’s data centers division. And the company’s main business, as well as the data center sector’s potential, are why it predicts AFFO per share growth of 8% to $3.76 in 2022.
Best of all, this stock can be purchased for a forward price-to-AFFO-per-share ratio of 12.9, which is reasonable given its excellence.
2. Crown Castle International
Many individuals are reading this article on their cellphones, and it’s a safe bet that most of them are. In fact, mobile devices accounted for half of all web traffic in the United States — 51.4 percent to be precise – in the second quarter of 2022.
Crown Castle International (CCI 0.03%) has ownership of around 115,000 small cell nodes, 40,000 cell towers, and over 80,000 route miles of fiber in the United States. The communications infrastructure is leased by major telecom companies to transmit signals to consumers, which is how smartphone data is generated and consumed.
It’s difficult to see how the United States could become less reliant on cellphones in the future. According to popular opinion, this will be the case. This is why it’s expected that by 2027, monthly mobile data usage in the United States will grow at a compound annual growth rate of 19.8 percent to 54.2 gigabytes per month
Based on this optimistic industry forecast, Crown Castle is confident that it will be able to meet its 7% to 8% annual dividend growth objective for the long term. When combined with a 3.3% dividend yield, the stock looks like a great income and development choice.