Digital Realty Trust preferred shares offer attractive ~6.46% yield with potential for capital gains amid strong demand.

Digital Realty Trust's preferred shares, especially Series J and L, are rated a buy due to their higher yield of about 6.46%, which is significantly above the common stock's 2.5%. These shares trade at a discount to their $25 par value, offering potential for capital appreciation if interest rates decline. The company's strong $1.8 billion backlog and stable debt profile support the safety of preferred dividends. However, these shares are callable at par, capping upside potential, and require active monitoring as they are not a buy-and-hold investment. Investors should consider them as part of a diversified fixed income portfolio rather than relying solely on them for growth.