Dividends4Life: Is This 3.5%-Yielding Data Center REIT A Buy?

This company is a fast-growing data center real estate investment trust with a first-class client base. The REIT has grown its funds from operations and dividend very quickly in the last decade. Its shares are not cheap, and an investment in the stock yields 3.5 percent. The yield on cost is most likely going to rise going forward.

Digital Realty Trust, Inc. (DLR) makes a decent value proposition for income investors that are comfortable with paying an elevated FFO multiple for the chance of capturing above-average dividend growth going forward. Digital Realty Trust has seen very strong FFO/share growth over the last decade thanks to growing demand for data centers. Digital Realty Trust covers its dividend with funds from operations and has significant room left to grow its payout. Shares are highly valued, and throw off an entry yield of 3.5 percent.

Source: Seeking Alpha

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