Two stocks in very different industries are worth considering, especially when markets are facing rising uncertainties and are giving back some of 2019’s gains.
Iron Mountain (NYSE:IRM) suits investors seeking dividend-income growth. The stock’s dividend yield is 7.8%. The stock is down after the company reported quarterly results that missed expectations. Organic revenue grew 1.9%, driven by storage but offset by lower service. Adjusted EBITDA missed expectations due to higher labour costs in March and weaker-than-expected Shred performance.
Looking ahead to 2020, organic exit rate revenue growth will top 3.5%, up from 3% in 2019.
CAE Inc. (TSX:CAE) topped $27.42 after its earnings report but ended at around $25 last week. It earned $0.46 a share as revenue grew a solid 41.5% to $1.02 billion. Not only does CAE keep beating expectations but its backlog is immense. In the fourth quarter, the book-to-sales ratio rose to 1.38 times, up from the 1.2 times annual multiple.
Order intake was $1.4 billion in Q4 and $4 billion in the year, a record. CAE ended the year with a massive $9.5-billion backlog. Civil brought in a record $2.8 billion orders and $5 billion in backlog, 22% higher than last year. The backlog in Defense was also a record at $4.5 billion.
For income, consider IRM stock and for growth, look at CAE, Inc.
