I have owned stocks since the late 1990s, and among the successes have been a few real stinkers (anyone remember Movie Pass owner Helios and Matheson Analytics, for example? Because my portfolio sure does).
However, I would put money on the one real estate investment trust (REIT) I currently own never suffering that fate. I think Digital Realty Trust (DLR 4.89%) is not only a superstar of a stock, it's an investment that I'm convinced will help me live comfortably and securely far into my Golden Years.
A great 21st-century REIT
Digital Realty is a company perfectly suited not only for our times but for many years into the future. Digital Realty owns and operates a network of data centers. These are the facilities in which server computers are located, dishing web pages to users around the globe.
Image source: Getty Images.
No one who's opened a web browser or looked up some information on their smartphone needs to be told that this is a constantly growing environment. Now, with the rollout of 5G mobile services, the average consumer has more opportunity than ever to cruise the internet or even watch a few movies on the go. The digital world will continue to proliferate. As it does, Digital Realty will continue growing right along with it.
Already, the company has an impressive list of customers, which includes but sure isn't limited to top corporate names such as social media titan Meta Platforms, cable and entertainment content king Comcast, and the two companies sitting atop the U.S. telecom mountain, AT&T and Verizon. No one has to worry about these well-capitalized enterprises paying rent for the server space they rely on.
Also, like any good and successful equity REIT, Digital Realty keeps expanding its footprint. The company currently has over 280 data centers, located in 26 countries. That's more than double the tally of 139 facilities at the end of 2015, hardly a long while ago.
A solid customer base and continual expansion are combining to push the fundamentals well higher. Digital Realty brought in over $4.4 billion of revenue in 2021. Like the data center count, this figure was more than double its 2015 counterpart (just under $1.8 billion).
The dividend stream that's turning into a river
As any REIT investor could happily attest, when a REIT grows, so does its dividend. Since first listing on the stock market in 2005, Digital Realty has so far increased its payout each and every year.
Over that stretch of time, it's almost quintupled, from an annual payout of $1.00 per share across 2005 to $4.64 last year. That's quite a feat in the typically slow-growing REIT world; by comparison, star retail REIT Realty Income's has crept up from nearly $1.40 in the former year to a shade under $2.96 in 2021. W.P. Carey has grown its distribution from $1.79 to $4.21 in the same time frame.
In retirement, I'll be looking for steady, passive income streams, and what could be better than a company that keeps delivering a sharply growing one? By the time I get to that stage in my life, Digital Realty is sure to be a much larger company. And it'll keep sending me regular payouts that increase handsomely.
