Equinix raises dividends for 11th year amid strong earnings; Digital Realty's payout frozen despite growth.

Equinix and Digital Realty, both data center REITs benefiting from AI demand, recently paid dividends with contrasting approaches. Equinix increased its dividend by 10%, marking 11 consecutive years of growth, supported by a payout ratio around 50% and strong cash flow to fund capital expenditures. Digital Realty, despite rising core funds from operations and improving earnings, has kept its dividend flat for over four years, resulting in a higher payout ratio in the low 60s. Equinix's stronger balance sheet and consistent dividend growth have led to better market performance, while Digital Realty's frozen payout raises questions about its capital priorities. Investors will watch if Digital Realty raises dividends as earnings continue to grow in 2026.