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Tripling A 4% Data Center Dividend With Options: CoreSite Realty

Published Fri, 16 Oct 2020 09:15:00 -0400 on Seeking Alpha

Seeking AlphaREITsTripling A 4% Data Center Dividend With Options: CoreSite RealtyOct. 16, 2020 9:15 AM ET|| About: CoreSite Realty Corporation (COR)by: Double Dividend StocksDouble Dividend Stocks Hidden Dividend Stocks PlusTarget 5-10% yields backed by solid earnings for better portfolio income.SummaryCOR pays $1.22/quarter.
Current January call options are $3.70.
Price targets, performance, valuations, earnings, financials, debt and liquidity also are covered.
We last covered CoreSite Realty (COR) in an April 2020 article, shortly after the market bottom in late March. We noted then that COR had outperformed the S&P 500 during the most recent three pullbacks.
Although COR has outperformed the S&P so far in 2020, it has lagged it and the Technology Select Sector SPDR Fund, XLK, and the Nasdaq 100 ETF, QQQ, over the past quarter, half year and year.
However, it has outperformed all of them in the past month:
Profile:
CoreSite Realty delivers secure, reliable, high-performance data center, cloud and interconnection solutions to a growing customer ecosystem across eight key North American markets. More than 1,350 of the world's leading enterprises, network operators, cloud providers, and supporting service providers choose CoreSite to connect, protect and optimize their performance-sensitive data, applications and computing workloads. (COR site)
COR's data center assets are in major US metro areas and service many large customers, such as IBM, Amazon Web Services - AWS, Microsoft Azure, among many others:
(COR site)
Earnings:
2019 was a bit of a "meh" year for growth for COR, with FFO only rising 1.18%, and EBITDA up 4%. Management did give a hefty raise to the dividends/share though, increasing it by 15%.
Looking back at the first half of 2020 shows COR actually doing better in the COVID era, with FFO up 5.14%, EBITDA up 6%, and revenue up 5.72%. Dividends/share rose 5.17%, awhile the share count rose ~6%:
DOR signed... Read more