Iron Mountain (IRM +2.02%) works with some of the largest companies on the planet. More than 95% of Fortune 500 corporations and over 240,000 businesses count on Iron Mountain to store physical and digital assets.
Its data centers have gained momentum due to the artificial intelligence (AI) boom, and that's part of the reason the stock has more than doubled over the past five years. The rally doesn't appear to be over, as fundamentals remain strong.
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Iron Mountain has a customer list that is hard to beat
Not only does Iron Mountain have a large customer base, but it has also been working with some of the top businesses for decades. Banks, governments, tech giants, and other companies have been customers for multiple decades.
Once customers start using Iron Mountain, they tend to stick around. The company has a 98% retention rate and gets to raise its prices as customers demand more physical and digital space. Iron Mountain's customers have the flexibility to pay more when needed, and that's made it easy for the real estate investment trust to deliver double-digit year-over-year revenue growth rates for several consecutive quarters, including Q1. Total sales were up by 21.6% year over year during that quarter.
Iron Mountain was recently named a 2026 Google Cloud Partner of the Year in the Business Applications category. That's a notable achievement since Alphabet is a long-term customer. Google's parent company will likely stick around, and the award suggests other cloud providers will continue to use Iron Mountain's service. Accolades like these can also attract new customers.
Revenue growth has been accelerating in recent quarters. The company delivered 16.6% year-over-year revenue growth in Q4 and 12.6% year-over-year growth in Q3. The growth rate is trending upward, and that has helped the stock beat the S&P 500 year to date.
NYSE: IRM
Key Data Points
A solid yield is hard to find with this type of growth
Iron Mountain's financial growth comes from a diversified group of customers. Rising AI spend also positions the company to accelerate revenue growth in future quarters. While Iron Mountain's service is a valuable component of the AI build-out, it's one of the few growth stocks that comes with a solid dividend yield.
The yield is nearly 3% right now, and the company raises its quarterly dividend at least once per year. It has hiked its dividend twice per year in some instances. The company's most recent dividend hike came in November 2025, when the quarterly dividend went from $0.785 per share to $0.864 per share, marking a 10% year-over-year increase.
A 10% dividend growth rate is one of the best indicators of a financially robust company that is still gaining market share. The high yield, impressive dividend growth rate, and star-studded customer pool make Iron Mountain worth closer consideration.
