DLR vs PSA: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
PSA yields 1.28% more than DLR. In dollar terms, DLR pays $4.88/share vs PSA's $12.00/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%.
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: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.7x.
PSA: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in DLR vs PSA 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 $296.17 per share, $10,000 buys about 33.8 shares of Public Storage (PSA). Each share pays $12.00 per year in dividends, so the position starts out generating roughly $405 per year — about $34 a month.
PSA is the larger income stream from day one: $135 per year more on the same $10,000 invested.
What could $10,000 of DLR or PSA 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.
Public Storage (PSA) has raised its dividend about 10.7% a year over the past five years. If that pace held, the $411 per year that $10,000 generates today at the current 4.11% yield would reach $1,131 per year by 2036 — a 11.3% yield on the original cost.
On those trailing rates, PSA pays more in 2036: $1,131 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 PSA's higher yield?
It doesn't, on the trailing numbers. Public Storage (PSA) yields more today (4.11% vs 2.83%) and has also grown its dividend at least as fast (10.7% vs 1.3% a year over five years). Unless DLR accelerates its raises or PSA stumbles, DLR never closes the income gap — PSA wins on both current income and growth.
Can DLR and PSA 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).
Public Storage (PSA) earns $9.62 per share against $12.00 paid out in dividends — 0.8x coverage (a 1% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, DLR or PSA?
For income you need right now, Public Storage (PSA) leads: $100,000 invested today pays about $342 a month at the current 4.11% yield, versus $236 a month from Digital Realty Trust, Inc. (DLR) at 2.83%.
PSA also leads on dividend growth (10.7% 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 $1,692/yr in PSA 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.
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