DLR vs SPG: Dividend Yield, Growth & Safety Comparison
Digital Realty Trust, Inc. (DLR) and Simon Property Group Inc. (SPG) are both in the Real Estate sector, making them natural rivals for dividend investors. SPG offers a significantly higher 4.36% yield compared to DLR's 2.83%, a gap of 1.53%. For dividend growth, SPG leads with a 5-year CAGR of 10.0% versus DLR's 1.3%. DLR holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | DLR | SPG |
|---|
| Dividend Yield | 2.83% | 4.36% |
| Annual Dividend | $4.88 | $8.55 |
| 5-Year CAGR | 1.3% | 10.0% |
| Payout Ratio | 1% | 60% |
| Consecutive Years | 0 | 4 |
| Price | $180.51 | $197.66 |
Yield Comparison
Simon Property Group Inc. (SPG) currently yields 4.36%, which is attractive for the broader market. That's 1.53% more than Digital Realty Trust, Inc. (DLR), which yields 2.83%. In dollar terms, SPG pays $8.55/share annually versus DLR's $4.88/share.
Dividend Growth
Over the past five years, SPG has grown its dividend at a 10.0% 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%. SPG: Dividend growth is slowing — the 3-year CAGR of 7.1% trails the 5-year rate of 10.0% and the 10-year rate of 6.4%.
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. SPG's dividend safety is rated "Moderate." The payout ratio of 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x. DLR's payout ratio of 1% is more conservative than SPG's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in SPG generates approximately $436/year in dividend income, compared to $283/year from DLR — a difference of $153/year. At $100,000, that gap widens to $1530/year.
Verdict
- Best for income: SPG
- Best for growth: SPG
- Best for safety: DLR
Frequently Asked Questions
Which has a higher dividend yield, DLR or SPG?
Simon Property Group Inc. (SPG) has a higher dividend yield of 4.36% compared to Digital Realty Trust, Inc. (DLR) at 2.83%.
Is DLR or SPG a better dividend growth stock?
Simon Property Group Inc. has the stronger dividend growth with a 5-year CAGR of 10.0%, compared to Digital Realty Trust, Inc.'s 1.3%.
Which is safer for dividend income, DLR or SPG?
Digital Realty Trust, Inc.'s dividend safety is rated "Safe" while Simon Property Group Inc. is rated "Moderate." 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 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x.
How much income does $10,000 in DLR vs SPG generate?
A $10,000 investment in DLR generates approximately $283/year in dividends, while the same amount in SPG generates about $436/year.
Which has a lower payout ratio, DLR or SPG?
Digital Realty Trust, Inc. has a lower payout ratio of 1% compared to Simon Property Group Inc.'s 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DLR vs SPG: which is better for retirement income?
It depends on your priorities. SPG for current income, SPG for dividend growth, DLR for safety. Many retirement investors hold both for diversification.
DLR Dividend Analysis | SPG Dividend Analysis | All Comparisons | Comparison Tool