5 Companies That Get Paid Every Time You Use The Internet

Get in on the tremendous ongoing growth prospects of these five stocks that make money every time you browse the internet and then give it back to you through generous and growing dividends. With humanity’s unsatiable appetite for consuming data increasing exponentially every year, these stocks can make you a fortune in the long-run. 

Internet and e-commerce stocks are hot, but it can be tough to decide when to buy and to feel comfortable with the valuations of these stocks. 

AMZN

Consider one of the most popular stocks in the sector, Amazon.com Inc. (Nasdaq: AMZN). During the early 2016 market correction, AMZN dropped by 30%. The stock also trades at 300 times earnings. With that performance history, I find AMZN and many of its web-centric tech peers to be too risky as investments. However, another way to invest in these hot sectors is to buy data center REITs. These stocks that control the data centers that host all of the internet traffic and servers may be a better, more diversified way to invest in the Internet.

A data center REIT owns facilities in which tech and other companies lease space for their data storage servers, or just lease data storage space on servers owned by the REIT. A data center provides high-level Internet and/or intranet connectivity to the REIT clients leasing space. Just in your personal experience, you probably realize how the need for data storage continues to grow tremendously. These centers are highly technical facilities, so just a handful of REITs are competing in the data storage business.

data center

Data center REITs have tremendous ongoing growth prospects and should be viewed as growth stocks. Consider these comparative results. Over the last year the First Trust DJ Internet Index Fund, (NYSE: FDN) an Internet stock ETF, has produced a 6.5% return. The five data center REITs listed below have an average one-year return of 68%. Internet companies may be getting the glamor and growing (but not very profitable) sales, but it is the data center REITs that provide the profitable infrastructure that the sector needs to operate.

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Disclosure: There are currently over twenty of these stocks to choose from in my  more

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Carol Wydra 2 years ago Contributor's comment

Look at these charts! How can you with a straight face say buy?

Carol Wydra 2 years ago Contributor's comment

They are ALL overvalued however. Too expensive to touch now. The time to get in them was last year.

James Hunter 2 years ago Member's comment

Carol Wydra, hindsight is always 20/20. Some of these will likely continue to increase. $AMZN for example.