Equinix Wins the Data Center REIT Dividend Race

A $5.16 quarterly dividend is doing more than putting cash in Equinix investors’ accounts. It marks the 11th consecutive year the data-center operator has raised its payout, a streak that now separates it sharply from Digital Realty Trust.

Equinix increased its dividend 10% in February, lifting the annualized payout to $20.64 per share. Digital Realty, by contrast, declared another $1.22 quarterly dividend in May, leaving its payout unchanged since the increase announced in March 2022. The difference is not cosmetic. For a retirement investor reinvesting distributions over decades, the growth rate of the cash stream can matter more than the starting yield.

That is the central argument for holding Equinix in a Roth IRA. REIT distributions are generally less tax-efficient in a taxable account because much of the income is taxed as ordinary income. Inside a Roth, qualified withdrawals are tax-free, and reinvested dividends avoid an annual federal tax bill while they compound.

Equinix also has a business profile that supports the dividend case. In its second-quarter update, the company raised its 2026 outlook and said dividend growth should approximate adjusted funds from operations per share growth. It expects third-quarter revenue between $2.525 billion and $2.575 billion, while its broader long-term outlook calls for continued revenue and AFFO expansion. The company’s interconnection network, which links cloud providers, enterprises and carriers inside its facilities, gives it a recurring-revenue engine beyond simply leasing powered space.

Digital Realty is hardly a broken income investment. Its second-quarter results included a record $1.4 billion backlog of annualized base rent at the company’s share, and management raised its 2026 Core FFO outlook to $8.15 to $8.20 per share. That growth is being directed toward development, acquisitions and balance-sheet needs rather than regular dividend increases.

The trade-off is clear. Digital Realty offers a larger current payout and a potentially cheaper entry point, while Equinix offers the stronger dividend record and a more explicit compounding story. For a Roth investor prioritizing rising income over immediate yield, Equinix has the cleaner case.