DLR vs PSA: Dividend Yield, Growth & Safety Comparison
Digital Realty Trust, Inc. (DLR) and Public Storage (PSA) are both in the Real Estate sector, making them natural rivals for dividend investors. PSA offers a significantly higher 4.11% yield compared to DLR's 2.83%, a gap of 1.28%. For dividend growth, PSA leads with a 5-year CAGR of 10.7% versus DLR's 1.3%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | DLR | PSA |
|---|
| Dividend Yield | 2.83% | 4.11% |
| Annual Dividend | $4.88 | $12.00 |
| 5-Year CAGR | 1.3% | 10.7% |
| Payout Ratio | 1% | 1% |
| Consecutive Years | 0 | 0 |
| Price | $180.51 | $296.17 |
Yield Comparison
Public Storage (PSA) currently yields 4.11%, which is attractive for the broader market. That's 1.28% more than Digital Realty Trust, Inc. (DLR), which yields 2.83%. In dollar terms, PSA pays $12.00/share annually versus DLR's $4.88/share.
Dividend Growth
Over the past five years, PSA has grown its dividend at a 10.7% CAGR compared to DLR's 1.3%. 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%. PSA: Dividend growth is slowing — the 3-year CAGR of 0.0% trails the 5-year rate of 10.7% and the 10-year rate of 5.7%.
Dividend Safety
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. PSA'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 0.8x. Both have similar payout ratios — DLR at 1% and PSA at 1%.
Income Comparison
A $10,000 investment in PSA generates approximately $411/year in dividend income, compared to $283/year from DLR — a difference of $128/year. At $100,000, that gap widens to $1280/year.
Verdict
- Best for income: PSA
- Best for growth: PSA
Frequently Asked Questions
Which has a higher dividend yield, DLR or PSA?
Public Storage (PSA) has a higher dividend yield of 4.11% compared to Digital Realty Trust, Inc. (DLR) at 2.83%.
Is DLR or PSA a better dividend growth stock?
Public Storage has the stronger dividend growth with a 5-year CAGR of 10.7%, compared to Digital Realty Trust, Inc.'s 1.3%.
Which is safer for dividend income, DLR or PSA?
Digital Realty Trust, Inc.'s dividend safety is rated "Safe" while Public Storage is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.7x. The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
How much income does $10,000 in DLR vs PSA generate?
A $10,000 investment in DLR generates approximately $283/year in dividends, while the same amount in PSA generates about $411/year.
Which has a lower payout ratio, DLR or PSA?
Public Storage 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.
DLR vs PSA: which is better for retirement income?
It depends on your priorities. PSA for current income, PSA for dividend growth. Many retirement investors hold both for diversification.
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