AMT vs DLR: Dividend Yield, Growth & Safety Comparison
American Tower Corp /Ma/ (AMT) and Digital Realty Trust, Inc. (DLR) are both in the Real Estate sector, making them natural rivals for dividend investors. AMT edges ahead on yield at 3.76% versus DLR's 2.83%. For dividend growth, AMT leads with a 5-year CAGR of 6.9% versus DLR's 1.3%. Both stocks carry a "Safe" dividend safety rating. AMT is a Dividend Contender with 14 years of consecutive increases.
Key Metrics Comparison
| Metric | AMT | DLR |
|---|
| Dividend Yield | 3.76% | 2.83% |
| Annual Dividend | $6.72 | $4.88 |
| 5-Year CAGR | 6.9% | 1.3% |
| Payout Ratio | 1% | 1% |
| Consecutive Years | 14 | 0 |
| Price | $190.81 | $180.51 |
Yield Comparison
American Tower Corp /Ma/ (AMT) currently yields 3.76%, which is solid for the broader market. That's 0.94% more than Digital Realty Trust, Inc. (DLR), which yields 2.83%. In dollar terms, AMT pays $6.72/share annually versus DLR's $4.88/share.
Dividend Growth
Over the past five years, AMT has grown its dividend at a 6.9% CAGR compared to DLR's 1.3%. AMT: Dividend growth is slowing — the 3-year CAGR of 2.7% trails the 5-year rate of 6.9% and the 10-year rate of 13.5%. DLR: Dividend growth is slowing — the 3-year CAGR of 0.0% trails the 5-year rate of 1.3% and the 10-year rate of 3.7%.
Dividend Safety
AMT's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x. DLR's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.7x. Both have similar payout ratios — AMT at 1% and DLR at 1%.
Income Comparison
A $10,000 investment in AMT generates approximately $376/year in dividend income, compared to $283/year from DLR — a difference of $93/year. At $100,000, that gap widens to $930/year.
Verdict
- Best for income: AMT
- Best for growth: AMT
Frequently Asked Questions
Which has a higher dividend yield, AMT or DLR?
American Tower Corp /Ma/ (AMT) has a higher dividend yield of 3.76% compared to Digital Realty Trust, Inc. (DLR) at 2.83%.
Is AMT or DLR a better dividend growth stock?
American Tower Corp /Ma/ has the stronger dividend growth with a 5-year CAGR of 6.9%, compared to Digital Realty Trust, Inc.'s 1.3%.
Which is safer for dividend income, AMT or DLR?
American Tower Corp /Ma/'s dividend safety is rated "Safe" while Digital Realty Trust, Inc. is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x. The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.7x.
How much income does $10,000 in AMT vs DLR generate?
A $10,000 investment in AMT generates approximately $376/year in dividends, while the same amount in DLR generates about $283/year.
Is AMT or DLR a Dividend Aristocrat?
American Tower Corp /Ma/ is a Dividend Contender with 14 consecutive years of increases. Digital Realty Trust, Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, AMT or DLR?
American Tower Corp /Ma/ has a lower payout ratio of 1% compared to Digital Realty Trust, Inc.'s 1%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AMT vs DLR: which is better for retirement income?
It depends on your priorities. AMT for current income, AMT for dividend growth. Many retirement investors hold both for diversification.
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