A Case For Investing In Digital Realty Trust's New Series L Preferred

About: Digital Realty Trust, Inc. (DLR), DLRTP, Includes: DLR.PK
by: Jenks Jumps
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Jenks Jumps
Growth at reasonable price, long-term horizon, value

Digital Realty Trust is closing on a new preferred issue, its Series L, on October 10th. Its dividend rate is lower than the Series K introduced in March.

Even though two payments have already been made on the Series K, at first glance, it may appear this older issue is a better investment than the new.

But, extrapolating hypothetical investment cases for these preferred shares and the common shares results in a telling comparison.

As my investment club considers a reinvestment in Digital Realty Trust, a split allocation may serve us well.

My investment club uses the shoes in our closets as an analogy for our investing decisions. Some pairs are keepers – reliable and comfortable. Others may need a little attention - a good polishing. Still