Easy Extra Money Idea of the Day:
As an IT professional, CoreSite Realty Corporation (COR) is right in my wheelhouse since COR is in the data center business. Any company of significant size will need to use a data center at some point which is good news for stocks like COR .
Put simply, data centers are usually large buildings that house servers which companies need to run their business. Companies pay the data center owner to house their server(s) but you might be asking why would a company do this as opposed to just keeping the server in their own building (for free)? Well the data center buildings usually have redundancy such as having internet connectivity with a number of providers (so if one ISP is down, they can roll over to another) and electricity redundancy (many data centers have gas generators). Data center buildings are also resistant to, or even able to withstand, natural disasters. Your average corporate building is not going to have these safety features which is where data centers come in. Most companies would have not be able to survive very long if their servers and computer equipment stopped working which is why they will pay a company like COR to house their server(s) and make sure everything stays powered on and online. That’s the beauty of the data center model, companies big and small all have this same need so COR can target both.
As a play on technology growth, I think of COR as a sister investment to my CCI (Crown Castle International) stock. I like COR specifically because they support popular technologies such as Amazon’s AWS and they have data centers spread out in all of the hot areas (Los Angeles, Silicon Valley, Chicago, Denver, Boston, Miami, New York, and Northern VA/Washington DC) which allows them to bring in many different clients across the country. Finally, for us dividend lovers, the quarterly dividend rate was recently increased from $0.53/share to $0.80/share! That’s a significant increase which shows strong growth prospects today and moving forward.
- COR is involved in the ownership, acquisition, construction, and management of data centers
- Founded in 2010 and based in Denver, Colorado
- Dividend Payout Schedule: 1-4-7-10
- To create monthly dividend income, pair with an investment from Dividend Payout: 2-5-8-11 and Dividend Payout: 3-6-9-12
Check out our YouTube review of COR!