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?
Bigger Picture
The spectacular gains during the first half of 2016 turned many long-term investors into traders, as unprecedented gains prompted portfolio rebalancing. These gaudy gains had gotten the attention of many "me too" investors who jumped in at the highs, creating frothy valuations.
However, the underlying fundamentals that are driving growth for the six data center REITs is not going away. In many cases, the growth drivers are accelerating going into 2017, including: Internet of Things (IoT), sometimes referred to as M2M, or machine-to-machine communication; Virtual Realty, or VR (such as augmented reality game sensation Pokémon Go); streaming OTT content; and social media.
By far the most relevant and actionable driver has been the massive wave of public cloud leasing which began to grow in 2014, accelerated noticeably during 2015, and burst onto the scene in 2016. This resulted in unprecedented net-absorption in Northern Virginia last year, the largest US Tier 1 data center market, often called Data Center Alley.
Cloud provider demand has spurred expansions in existing building shells, new ground-up data center builds, and site acquisitions for future development. However, what remains to be seen is what actually will be the "new normal" going forward in large markets including: Dallas, Chicago, Silicon Valley, Seattle/Portland and Phoenix.
Reits
