Shares of real estate investment trusts Digital Realty Trust (NYSE:DLR) and DuPont Fabros Technology (NYSE:DFT) have stabilized after a sell-off in early February. The declines were sparked by sentiment that the Federal Reserve would soon raise interest rates, fanning concerns that investors would move out of high-yielding REITs and into riskier assets. But the prospect of a rate hike has been pushed back to at least September amid an uncertain economic outlook.
Shares of Digital Realty are flat this year, underperforming the S&P 500's 2.2% gain. DuPont Fabros is down 4%. Yet the annualized dividend yield of both stocks is north of 5%, well above the S&P 500's yield and more than double the 10-year Treasury yield. Digital Realty has reported four straight quarters of accelerating growth in funds from operations, including a better-than-expected 28% gain in the latest quarter to $1.56 a share.
Source: Investors.com
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Posted by D4L | Saturday, June 20, 2015 | ArticleLinks | 0 comments »________________________________________________________________
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