Companies that pay big dividends often make for some of the best investments, and there is one giant that at first glance has a lot to like about it, and may be a worthy place to park your money
Companies that pay big dividends often make for some of the best investments, and there is one giant that at first glance has a lot to like about it, and may be a worthy place to park your money today.
2. An intriguing business
One of the first things that piqued my attention in
CoreSite Realty was not just that it was a REIT like
Realty Income, but the business it finds itself in.
Instead of leasing out to various companies for retail
purposes, it instead owns 16 data centers and provides
companies access to its properties and corresponding
3. An intriguing business
Seemingly, not a day goes by without some firm
announcing it is upgrading to cloud-based technology, or a
report comes out about the coming big-data revolution.
Undeniably there will likely be technology companies which
see massive growth as a result.
Image Source: Flickr / John McStravick.
4. An intriguing business
But the fact CoreSite Realty provides the property and
solutions which make all of this possible -- and itself
isn’t a technology company -- means it is exposed to
less risk since it holds a secondary place in the industry.
While it may not provide the massive upside of
technology companies, it also provides much less risk.
5. Impressive Results
Not only is the industry it finds itself in attractive, but more importantly, its
actual operating results are as well. As shown in the chart below, its core
funds from operations have continued to rise and since it went public:
6. Impressive Results
And when considering the adjusted funds from
operations of $0.51 per share in the second quarter,
versus the $0.25 seen in the fourth quarter of 2010, it
has watched its earnings rise at a staggering annual
rate of 23%.
All of this is to say, it doesn’t simply operate in an
attractive industry, but it also has executed incredibly
7. Reasonable Valuation
The final thing worth noting
about CoreSite Realty is its
It noted in its latest earnings
release it expects its full year
funds from operations (FFO)
to stand between $2.07 and
Meaning at today’s price hovering around $34.50 it’s
trading at a multiple of roughly 16.7 Price / FFO.
8. Reasonable Valuation
This is the almost identical multiple Realty Income was
trading at in June, meaning its valuation is surprisingly
Although it is undoubtedly trading at a higher cost
relative to some of the other REITs, its impressive
growth and prospect for future growth would warrant a
9. REITs are so attractive is because the
smartest investors know dividend
stocks crush non-dividend paying ones
over the long term. And we’ve found
great dividend stocks for you!