Originally Posted By: DrRoughneck
Originally Posted By: dblshock
Originally Posted By: DrRoughneck
Originally Posted By: Mr Nice
Which dividend stocks did you load up on ?
Data center REITs. Digital Realty (DLR) and Dupont Fabros (DFT) are the best two because of their core (transport, infrastructure) focus which attracts bigger players (Amazon, Google, FB).
The CES convention started today and from the looks of it, personal data usage and storage needs will increase SIGNIFICANTLY in the coming months due to... fitbits (morons sharing so much about their lives), the internet of things, more smartphone apps talking to cloud-based servers, and every new device spying on everything and spewing such inordinate amounts of data, no responsible IT org. would dare processing this in-house. So cloud it is.
Oh and and self-driving cars as well and partially driver-assisting systems from Denso, Aisin, Johnson Controls, Valeo, Honeywell... will only increase the need for data transfer and more data centers.
Since Data Center REITs pay no corporate tax (pass-through entity provided they pay out 90% of profits as dividends), they have an unfair competitive advantage and the most profitable corporate shell for data centers.
So basically Data Center REITs are a high dividend security which is also a growth security (value appreciates). Usually you have either, but here you can have both.
I see it as a way to turn the cloud and smartphone frenzy into dividends in my pocket.
Please don't take my word for it, do your own research.
Thx, agree, do you favor one over the other?
Digital Reality is the largest. In 2016 it was added to the SP500 when Time Warner was taken out. Because of its size it gets preferential loan rates which is an advantage over others now that Fed rates is raising. It will grow steadily.
Dupont Fabros is much smaller, so it has more room to appreciate. It is also a tad riskier but given how data centers grow as an industry right now, their aggressivity will pay off. It pays a higher dividend.
Both are fine. As with anything it's risk vs expected rate of return.
I mentioned Datacenter REITs here at the beginning of 2017. Two of them, DFT and COR posted earnings today and are up 4.1% and 4.6% respectively for the day. COR profits are up over 30% yoy.
This is no surprise really - as I mentioned datacenter REITs have a somewhat unfair advantage to profit tax-free on the growth of the cloud and usage of mobile apps. And this shows no sign of abating. Many smart people (and I find BITOG has more smart people than most any other place) have also realized it early on.
Now I don't mean to sound like I'm gloating on it or anything but...
... I told you so.