One of the best ways to generate consistent income is with real estate investment trusts (REIT), like Digital Realty (DLR), which also yields about 3.1%.
What makes DLR even more attractive is the big demand for data centers for artificial intelligence projects. In fact, thanks to artificial intelligence, data center demand is expected to rise at a 15% CAGR until 2030, according to Goldman Sachs.
Helping, analysts at BMO Capital just upgraded DLR to an outperform rating. The firm believes DLR is well-positioned as a play on the AI boom, with room for expansion. JPMorgan upgraded DLR to an overweight rating with a price target of $175. Even analysts at Mizuho just initiated coverage of DLR with an outperform rating.