2 Data Center REITs With Yields Up to 3.6%
Data center real estate investment trusts (REITs) specializes in owning and managing income-generating data center properties. Data centers are facilities equipped to house and provide the necessary infrastructure for computer systems, servers, networking equipment, and storage components. These facilities are crucial for the storage, processing, and management of digital information and services.
Investing in a data center REIT allows individuals to gain exposure to the growing demand for data storage and processing capabilities, driven by the increasing reliance on cloud computing, big data, and digital services. Data center REITs typically lease space to technology companies, cloud service providers, and other enterprises requiring secure and reliable data storage solutions.
If you're looking to invest in data centers, here are two pure-plays with yields up to 3.6%.
Digital Realty Trust
Digital Realty Trust (NYSE:DLR) owns, operates, or has ownership interests in more than 300 data centers across more than 25 countries on six continents as of its most recent investor presentation.
Digital Realty currently pays a quarterly dividend of $1.22 per share, equating to $4.88 per share annually, which gives it a yield of about 3.6% at current levels. Digital Realty has also raised its dividend 18 times since its 2004 initial public offering, making it qualify as both a high-yield and dividend-growth stock.
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Equinix
Equinix Inc. (NASDAQ:EQIX) owns, operates, or has ownership interests in 251 data centers across 32 countries on six continents as of its most recent investor presentation.
Equinix currently pays a quarterly dividend of $4.26 per share, equating to $17.04 per share annually, which gives it a yield of about 2.1% at current levels. While its yield may not be eye-popping, it's important to note that the company has raised its regular annual dividend for eight consecutive years, and its 25% increase last October puts it on pace for 2024 to mark the ninth consecutive year with an increase.
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