Digital Realty Trust (DLR-N)

(A Top Pick Dec 06/19, Up 22%) Carrier-neutral data centre. Now prefers Equinix. 12-month price target of $165.50, so there's still some runway.

Equinix vs. Digital Realty They're both the largest US data centres. Equinix focuses on interconnection and co-location, housing thousands of businesses within the same business centre. Digital Realty focuses on hyperscale, which provides buildings and server racks for megacaps like Google. The latter business has fewer barriers to entry and is far more competitive with less pricing power. He prefers Equinix's model.

He does not own DLR presently, but has in the past. They are involved in the data centre business. He currently owns EQIX, who partnered with BCE to manage their data centres. If you own DLR, stick with it. If you are looking at getting into the space, consider EQIX.

This is a data centre play for big players (like Amazon) and is a REIT. It has had a recent pullback, so he is recommending it. They just bought a Dutch information services company and thinks this will be very positive. Yield 3.62% (Analysts’ price target is $133.00)