Well covered — data-center rent, still compounding. A 2.16% yield on a $5.16 quarterly dividend, raised in February 2026 from $4.69, is covered by AFFO: $11.78 per share in Q2 2026 against the $5.16 dividend, about a 44% payout. Revenue grew 16% in the quarter, adjusted EBITDA margin hit a record 53%, and full-year 2026 AFFO guidance was raised to $42.69–$43.29 per share — the payout rests on interconnection demand, not leverage.
Key risk: Data-center build-out risk — the $5.0–$6.0 billion 2026 capital plan only pays if bookings and backlog keep converting; a bookings slowdown or power-cost spike hits AFFO growth first.
Changes if: AFFO payout pushes well past ~44%, or annualized gross bookings roll over from the Q2 record pace. The cushion, not the headline yield, is the tripwire.
- ✓AFFO coverage check: AFFO of $11.78 per share in Q2 2026 covers the $5.16 dividend — about 44% paid out, with the rest retained for expansion.
- ✓Yield check: 2.16% indicated — $5.16/qtr × 4 at the $955.03 close on Oct. 23, 2026. Earned data-center income, not a special or return of capital.
- ✓Growth check: Annualized gross bookings grew 23% in Q2 2026 and a record 9,700 net interconnections were added; adjusted EBITDA margin reached 53%.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.