DLR vs O: Dividend Comparison
Dividend data as of
Digital Realty Trust, Inc. (DLR) and Realty Income Corporation (O) are both in the Real Estate sector, making them natural rivals for dividend investors. O offers a significantly higher 5.02% yield compared to DLR's 2.83%, a gap of 2.19%. For dividend growth, O leads with a 5-year CAGR of 8.2% versus DLR's 1.3%. Both stocks carry a "Safe" dividend safety rating.
Verdict
Yield Analysis
O yields 2.19% more than DLR. In dollar terms, DLR pays $4.88/share vs O's $3.21/share annually.
Dividend Growth
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%.
O: Dividend growth is accelerating — the 3-year CAGR of 11.4% exceeds the 5-year rate of 8.2% and the 10-year rate of 5.6%.
Dividend Safety
DLR: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.7x.
O: The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in DLR vs O today?
At $180.51 per share, $10,000 buys about 55.4 shares of Digital Realty Trust, Inc. (DLR). Each share pays $4.88 per year in dividends, so the position starts out generating roughly $270 per year — about $23 a month.
At $65.62 per share, $10,000 buys about 152.4 shares of Realty Income Corporation (O). Each share pays $3.21 per year in dividends, so the position starts out generating roughly $488 per year — about $41 a month.
O is the larger income stream from day one: $218 per year more on the same $10,000 invested.
What could $10,000 of DLR or O income look like in 10 years?
Digital Realty Trust, Inc. (DLR) has raised its dividend about 1.3% a year over the past five years. If that pace held, the $283 per year that $10,000 generates today at the current 2.83% yield would reach $321 per year by 2036 — a 3.2% yield on the original cost.
Realty Income Corporation (O) has raised its dividend about 8.2% a year over the past five years. If that pace held, the $502 per year that $10,000 generates today at the current 5.02% yield would reach $1,102 per year by 2036 — a 11.0% yield on the original cost.
On those trailing rates, O pays more in 2036: $1,102 versus $321 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would DLR's dividend growth overtake O's higher yield?
It doesn't, on the trailing numbers. Realty Income Corporation (O) yields more today (5.02% vs 2.83%) and has also grown its dividend at least as fast (8.2% vs 1.3% a year over five years). Unless DLR accelerates its raises or O stumbles, DLR never closes the income gap — O wins on both current income and growth.
Can DLR and O afford their dividends?
Digital Realty Trust, Inc. (DLR) earns $3.58 per share against $4.88 paid out in dividends — 0.7x coverage (a 1% payout ratio).
Realty Income Corporation (O) earns $1.07 per share against $3.21 paid out in dividends — 0.3x coverage (a 3% payout ratio).
DLR's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for O if earnings weaken.
Which fits an early-retirement income portfolio better, DLR or O?
For income you need right now, Realty Income Corporation (O) leads: $100,000 invested today pays about $418 a month at the current 5.02% yield, versus $236 a month from Digital Realty Trust, Inc. (DLR) at 2.83%.
O also leads on dividend growth (8.2% vs 1.3% a year over five years), so the trailing numbers favor it on both fronts.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $424/yr in DLR vs $1,798/yr in O by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
Track DLR and O in your portfolio
See your real income from both — forward projections, yield on cost, and dividend safety signals. Sync your brokerage free for 30 days, or track holdings manually on the free plan.
Frequently Asked Questions
Related Resources
Individual Stock Analysis
Dividend Tools
Track Your Dividends
More Comparisons
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
By using this tool you agree to our Terms of Service and Privacy Policy.