#6 - Public Storage (NYSE:PSA)
You might not expect a real estate investment trust (REIT) that specializes in self-storage, cracking a list of ESG stocks to buy. However, Public Storage (NYSE:PSA) has a 68.3% Net Impact Ratio and one of the reasons is its positive impact on society. I suppose that having a place to sequester some belongings keeps items out of landfills which could have an environmental impact as well.
But the larger story is that Public Storage operates in a defensive sector. And the demand for storage units increases in times of economic instability. This is typical because of life events such as downsizing. It doesn’t hurt that the company is the largest publicly traded self-storage REIT with ownership or interest in approximately 2,700 self-storage facilities in the United States.
That explains why PSA stock has been largely unaffected by the recent market selloff. In fact, the stock is up 11% despite the company missing on both earnings and revenue when it reported earnings in November 2021.
Another reason may be because Public Storage pays out over 95.5% of its earnings in dividends. That currently adds up to about an extra $8 per share in annual dividends to PSA shareholders.
About Public Storage
Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand.
More- Current Price
- $302.13
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $344.54 (14.0% Upside)
