Invest In These 2 High Yielding Data Center REITS As The Credit Risk For Tech Companies Increases - Iron Mountain (NYSE:IRM), Equinix (NASDAQ:EQIX)

Although interest rates are rising, it doesn’t mean savvy investors cannot earn positive returns on real estate investment trusts (REITs). Historically, when the risk-free rate rose dramatically in six time periods, REITs earned positive returns during¬†four of those periods, and out of half of those periods, they beat the S&P 500.

With interest rates on the rise and the technology sector down nearly 34% year-to-date, tech companies may look to data center REITs for the funding of new properties.

These 2 data center-focused real estate investment trusts have high yields and plenty of customers to drive future growth.

Iron Mountain Inc IRM is offering a dividend yield of 5.37% or $2.47 per share annually, utilizing quarterly payments, with a stellar track record of increasing its dividends for nine consecutive years. Iron Mountain is a record management services provider primarily catering to enterprise clients in developed markets.

As of September 30, 2022, Iron Mountain has 1,380 facilities and served 225,000 customers in 59 countries.

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Equinix Inc. EQIX is offering a dividend yield of 2.09% or $12.40 per share annually, using quarterly payments, with a notable track record of increasing its dividends over the past seven years. Equinix is a retail provider of data centers, enabling hundreds of enterprise tenants to house their servers and networking equipment in a colocated environment.

In the second quarter, Equinix saw quarterly revenues up 10% on both an as-reported and constant currency basis, giving the firm the distinction of having the longest streak of consecutive quarterly revenue growth in the S&P 500, accounting for 78 consecutive quarters.

Equinix operates 240 data centers in 66 markets worldwide and owns just less than half of them, as of 2021.

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