If You Invested $10,000 In Digital Realty Stock 10 Years Ago, How Much Would You Have Now?

If you had invested $10,000 in digital realty trust (DLR) stock 10 years ago, you would have seen a remarkable return on your investment. digital realty, a leading data center real estate investment trust (REIT), has consistently outperformed the broader market and other REITs over the past decade. Let's explore how this investment would have grown over time and what factors contributed to Digital Realty's impressive performance.



Digital Realty's stock price has more than quadrupled since 2014, with a compound annual growth rate (CAGR) of 18.7%. In comparison, the S&P 500 index has returned 18.87% over the same period. This strong performance can be attributed to several key factors:

1. Growing demand for data centers: As the digital economy expands, so does the need for data centers to store and process vast amounts of data. Digital Realty's focus on data center real estate has positioned it well to capitalize on this growing demand.
2. Consistent revenue growth: Digital Realty's revenue has grown at a CAGR of 11.58% over the past decade, driven by rental income growth and strategic acquisitions. This consistent revenue growth has translated into strong earnings and dividend payouts.
3. High occupancy rates: Digital Realty's data centers have maintained high occupancy rates, averaging 93.5% in 2024. This high occupancy rate is a testament to the company's ability to attract and retain tenants, as well as its strong management and customer service.
4. Strategic acquisitions: Digital Realty has grown through strategic acquisitions, expanding its portfolio and entering new markets. For example, in 2021, the company acquired Ascenty Data Centers for $1.4 billion, adding 13 data centers to its portfolio. These acquisitions have helped Digital Realty increase its global footprint and diversify its revenue streams.
5. Dividend growth: Digital Realty has consistently increased its dividend payout, with an annual dividend growth rate of 3.8% over the past 10 years. This dividend growth has provided investors with a stable and growing income stream, while also driving capital appreciation in the stock.



To illustrate the potential of this investment, let's assume you invested $10,000 in Digital Realty stock in 2014, when the stock price was around $48.65. Based on Digital Realty's stock price history and assuming you reinvested your dividends, your investment would have grown to approximately $47,000 by 2024. This represents a total return of 370% over the 10-year period.

In conclusion, investing in Digital Realty Trust stock 10 years ago would have been a lucrative decision, with a total return of over 370%. The company's strong performance can be attributed to its focus on data center real estate, consistent revenue growth, high occupancy rates, strategic acquisitions, and dividend growth. As the digital economy continues to expand, data center REITs like Digital Realty are well-positioned to capitalize on the growing demand for data storage and processing.