If you’re looking for a lower-risk AI name that offers reliable dividend income while the underlying company is catching a major secular growth tailwind, put Digital Realty Trust (NYSE: DLR) on your radar — if not in your portfolio — while you can plug into it at a…
rward-looking dividend yield of 2.5%. Here’s what you need to know
What’s Digital Realty Trust? In simplest terms, Digital Realty Trust rents remote, cloud-based access to its artificial intelligence data centers to companies that can’t or don’t want to build one of their own. That’s not the crux of the bullish argument, though.
While industry observer Precedence Research expects the global AI data center market to grow at an average yearly rate of 27.5% through 2034, what makes Digital Realty so unique is its structure, and how that makes it such a fantastic (and somewhat rare) dividend-paying name within the technology sector. See, Digital Realty Trust is a real estate investment trust, or REIT, for short. That just means it collects recurring rental income, passing most of its profits to shareholders in the form of a dividend before they’re taxed at the corporate level.