Digital Realty (DLR) is one of the 20 largest publicly-traded U.S. Real Estate Investment Trusts (REITs) with an equity market capitalization of approximately $7 billion. The company, through its controlling interest in Digital Realty Trust, L.P. and subsidiaries of the Operating Partnership, owns, acquires, repositions and manages technology-related real estate.
DLR is a Dividend Contender with a 10-year streak of dividend increases. It pays quarterly dividends in March, June, September and December. The current dividend is 83¢ per share, so starting yield on cost is 6.30%.
Over the past 10 years, DLR's share price performance has been quite impressive, increasing 341% compared with 71% by the S&P 500. DLR's share price has had only 2 down years, in 2008 and 2013. The most recent decline provides a great investment opportunity.
Analysis of DLR
My fair value estimate for DLR is $56.10, so I picked up shares at a discount of about 6%. The following table provides some key statistics for DLR, with highlighted values relating directly to my selection criteria.
DLR earns 5 stars: (*******)
Other ratings for DLR
DLR is my first REIT holding in DivGro and increases my exposure in the Financials sector to six holdings.
48 shares of DLR adds $159.36 of expected dividend income, increasing DivGro's projected annual dividend income to $3,667.79.
DLR is the 28th holding in DivGro.
This post is a little thin on detail – I'll add more detail soon and elaborate on why I like DLR at this price... Nevertheless, feel free to comment below on DLR. Do you own shares of DLR?