How Investors May Respond To Digital Realty Trust (DLR) Dividend and Analyst Endorsements Amid AI Data Center Growth

Simply Wall St
  • Earlier this month, Digital Realty Trust's board of directors declared a US$1.22 per share common dividend for Q3 2025, alongside dividends for its Series J, K, and L preferred stocks, all payable at the end of September to shareholders of record as of September 15.
  • Recent analyst reports have reaffirmed positive outlooks for Digital Realty Trust, with BMO Capital naming it their top pick in the data center sector due to strong demand and ongoing AI infrastructure growth.
  • We'll explore how renewed analyst confidence, driven by data center demand and AI trends, shapes Digital Realty Trust's investment narrative.

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Digital Realty Trust Investment Narrative Recap

Shareholders in Digital Realty Trust are chiefly betting on the continued surge in demand for data centers, propelled by AI and cloud computing, to sustain future revenue and earnings growth. The recently reaffirmed US$1.22 per share common dividend signals stability, but this news event does not meaningfully alter the most prominent near-term catalyst, persistent leasing demand, or the largest risk, which remains the potential for new data center supply to outpace demand. The most relevant related update is the positive view from BMO Capital, which underscored Digital Realty as a top pick in the sector due to robust data center demand and AI-driven infrastructure buildouts. This aligns with ongoing analyst confidence in the company’s future, even as supply risk remains front of mind. However, investors should also be aware that despite solid demand, there are concerns about supply expansion possibly exceeding...

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Digital Realty Trust's outlook anticipates $7.9 billion in revenue and $1.0 billion in earnings by 2028. This reflects an 11.5% annual revenue growth rate but a $300 million decrease in earnings from current levels of $1.3 billion.

Uncover how Digital Realty Trust's forecasts yield a $195.44 fair value, a 17% upside to its current price.

Exploring Other Perspectives

DLR Community Fair Values as at Aug 2025

Community members at Simply Wall St estimate fair values for Digital Realty Trust between US$110.45 and US$252.33, across three opinions. While most analysts focus on strong contract backlogs as a catalyst, your outlook may differ, explore alternative valuations and risk assessments among peers.

Explore 3 other fair value estimates on Digital Realty Trust - why the stock might be worth as much as 51% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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