Public Storage: 5.4-5.55% Preferred Dividend Yield and Good Asset Coverage Ratio

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Public Storage($NYSE:PSA) is one of the largest storage REITs in the world, with half of its equity portion funded by preferred shares. However, the perpetual nature of these securities only offers a sub-100 base point yield bump over the 9-year debt securities, despite ranking junior to said debt securities. During the second quarter, Public Storage generated total revenue of $1.03B, including $59M from ancillary operations. The company’s strong performance means that the preferred dividends are well-covered. Despite this, the yield bump offered by the perpetual nature of the securities is not as significant as one might expect.

Dividends

Public Storage is a real estate investment trust that owns and operates self-storage facilities. The company has a strong history of dividend growth, and its dividend yield is currently around 5.4%. Public Storage has a good asset coverage ratio, meaning that its assets are able to cover its liabilities. This is important for a dividend stock, as it indicates that the company is financially healthy and able to continue paying dividends. If you are looking for a dividend stock with a good yield and a strong history of dividend growth, Public Storage may be worth considering.

Share Price

On Wednesday, shares of Public Storage opened at $327.0 and closed at $324.7, representing a slight dip of 0.9% from the previous day’s closing price of $327.8. Despite this minor setback, Public Storage’s stock price is still up significantly from where it was trading just a few months ago, and the company remains a leader in the self-storage industry. The company is known for its high-quality storage units and excellent customer service, which has helped it to maintain a loyal customer base.

VI Analysis

Public Storage has strong fundamentals that reflect its long-term potential. The company has a healthy cash flow and debt situation, and is capable of sustaining future operations in times of crisis. It is also classified as a “cow” a type of company that has a track record of paying out consistent and sustainable dividends. Dividend-paying companies are generally seen as less risky, as they pursue growth at a sustainable rate. Overall, Public Storage is strong in assets, dividends, profitability, and medium in growth.

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Summary

PSA is a well-established company with a long history of paying dividends. PSA’s dividend yield is among the highest of all publicly traded REITs. This ratio measures a company’s ability to cover its debt obligations with its assets. PSA is a high-quality dividend stock that is worth considering for investment. The company’s strong financial position and high dividend yield make it an attractive investment for income-seeking investors.