The craze surrounding the niche cloud computing sector is real as evidenced by the booming market valuations of the companies and the number of small firms being purchased by the big tech names. Investors have a handful of names in the sector they could purchase to gain exposure to what that specific company may offer.
However, there is a secondary play on the cloud computing boom - a Real Estate Investment Trust (REIT).
Digital Realty Trust ($DLR) is a REIT that owns, develops, and manages technology-related properties. It focuses on properties that are centrally located and that can offer secure data centers to Fortune 1000 companies. As the need for more data and storage increases dramatically in the coming decade, the REITs that offer the properties to store this data properly will boom. $DLR is in this category.
On top of the fact the stock is breaking out to a new all-time high today, it also pays a 4.1% dividend, which is double that of the 10-year Treasury.
The ideal entry point is near the $70, as there is support near the $68 area.
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