#7 - Extra Space Storage (EXR) (NYSE:EXR)
Dividend stocks and real estate investment trusts (REITs) go together like peanut butter and jelly. That's because REITs are required to pay up to 90% of their earnings to investors in the form of dividends. However, many investments having to do with real estate can be volatile. And Extra Space Storage Inc. (NYSE: EXR) was no exception.
Extra Space Storage owns and operates over 3,700 self-storage stores in 42 states and the District of Columbia. Revenue hasn't been the problem. In the first quarter of 2024, the company posted 58% YOY revenue growth.
Earnings have been a different story, and that continues to weigh on EXR stock, which has been down 11.9% in the last 12 months, and that's after a 21% increase in the stock price in the last six months. However, the recent stock price growth suggests analysts are warming up to the stock. The consensus price target is $155.50, which would give the stock a 16.8% upside, and you get a dividend with a 4.88% yield.
About Extra Space Storage
Extra Space Storage Inc, headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2023, the Company owned and/or operated 3,714 self-storage stores in 42 states and Washington, DC The Company's stores comprise approximately 2.6 million units and approximately 283.0 million square feet of rentable space operating under the Extra Space, Life Storage and Storage Express brands.
Read More - Current Price
- $180.09
- Consensus Rating
- Hold
- Ratings Breakdown
- 7 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $170.93 (5.1% Downside)
In volatile markets, dividend stocks can be a safe-haven asset for investors who are prioritizing income over growth. What these companies lack in sizzle, they make up for in predictable payouts that, as explained in the introduction, can outpace the yield they get in other fixed-income assets.
And what makes high-yield dividend stocks attractive now is that you're getting the best of the best. When interest rates were near zero, a dividend yield of 2.5% could be considered a high yield. However, with interest rates much closer to historically normal levels, the companies that pay truly high-yield dividends have a chance to stand out.
Remember that dividend yield is only one measure of a quality dividend. In some cases, a high dividend yield may point to trouble in the company's underlying financials. That's not the case with the companies in this report.
However, this list is just a sampling of high-yield dividend stocks. For a more complete list, MarketBeat has several free tools available. Among the best is the Dividend Screener. This tool allows you to filter dividend stocks based on criteria including dividend yield, market cap, market sector, and annual dividend payout.
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