Data center REIT Digital Realty Trust (NYSE:DLR) has delivered impressive performance for investors in its decade or so as a public company. In fact, the stock is up 37% in the past month alone, and it now trades at an all-time high. After a performance like that, it's only natural to ask the question: Is Digital Realty Trust still a buy, or has it gotten too expensive?
The numbers and trends look good
It's easy to see why Digital Realty Trust's stock has performed well. The need for data storage has grown tremendously over the past decade or so, as has the need for data centers, especially those leased from an outside company (like Digital Realty). The company has managed to grow its core FFO by an average of 14% per year since its IPO, which has in turn resulted in a 12% annual dividend growth rate.
Source: The Motley Fool