Here's Why Digital Realty Can Keep Raising Its Dividend
If you are old enough, you remember a time when the internet didn't exist. You probably wouldn't want to go back, and no one who has grown up with the technology would want to get rid of it. Increasing demand for the internet and internet-tied devices seems more likely than a Luddite revolution, and that's why Digital Realty (NYSE: DLR) has such a great business. It's also why this dividend-paying stock will likely keep growing its disbursement for years to come.
At its core, Digital Realty is a real estate investment trust (REIT). This is a business structure specifically designed to pass income on to investors, with REITs avoiding corporate-level taxation as long as at least 90% of their taxable income is paid as dividends. There are a lot of REITs, but most own things like apartments, offices, warehouses, and strip malls. Digital Realty owns data centers, another niche of the REIT sector.
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Source Fool.com
