DIVO viable long-term investment? Dividend yield
7/26/2024 11:23pm
**Digital Realty Trust (DLR) appears to be a viable long-term investment**, and here's why:
1. **High Dividend Yield**: Digital Realty Trust has a current dividend yield of 3.25%, which is above the average dividend yield of many other REITs and stocks. This indicates that the company is returning a significant portion of its profits to shareholders, which can be attractive to income-focused investors.
2. **Consistent Dividend Growth**: Digital Realty Trust has a history of increasing its dividend each year since 2004, making it a dividend achiever. This consistent dividend growth is a positive sign for long-term investors, as it suggests that the company is able to generate profits and cash flow that can be distributed to shareholders.
3. **Strong Financial Performance**: The company has reported positive net income for each of the past decade, and its profitability rank is 7 out of 10 as of March 31, 2024. This indicates that Digital Realty Trust has good profitability prospects.
4. **Growth Metrics**: The company's revenue per share has been growing, and its growth rank is 7 out of 10, suggesting that Digital Realty Trust has a good growth trajectory relative to its competitors. The company has also reported "Same-Capital" cash NOI growth of 9.9% in 4Q23 and rental rate increases on renewal leases of 8.2% on a cash basis in 4Q23, indicating strong operational performance.
5. **Strategic Positioning**: Digital Realty Trust owns and operates over 300 data centers worldwide, making it a leading provider in the cloud- and carrier-neutral data center, colocation, and interconnection solutions. With the growing demand for data centers and cloud services, Digital Realty Trust is well-positioned to benefit from this trend.
In conclusion, Digital Realty Trust (DLR) offers a high dividend yield, consistent dividend growth, strong financial performance, good growth metrics, and strategic positioning, making it a viable long-term investment option for income-focused investors.