September 14, 2025 a 07:32 am
PSA: Dividend Analysis - Public Storage
Public Storage (PSA) presents a compelling opportunity for dividend investors seeking consistent income. With a robust 41-year dividend history and a current yield of 4.11%, PSA demonstrates resilience and commitment to shareholder returns. However, potential investors should weigh the high payout ratios against stability factors and industry positioning.
Overview 📊
Public Storage maintains a strong position within its sector, offering a substantial dividend yield of 4.11%, indicative of its stable cash flow generation capabilities. The company's current dividend per share is set at 13.13 USD, underscoring its robust dividend payout policy over the past 41 years. Importantly, there have been no recent dividend cuts or suspensions, indicating financial stability and a commitment to shareholder returns.
| Metric | Details |
|---|---|
| Sector | Real Estate |
| Dividend yield | 4.11% |
| Current dividend per share | 13.13 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
Dividend History 🗣️
PSA's dividend history showcases a legacy of stability, crucial for investors focusing on long-term income. Continuous payments without reductions support confidence in PSA's future payouts. The company's ability to maintain dividends over multiple decades highlights its resilience during various economic cycles.
| Year | Dividend per share (USD) |
|---|---|
| 2025 | 9.00 |
| 2024 | 12.00 |
| 2023 | 12.00 |
| 2022 | 21.15 |
| 2021 | 8.00 |
Dividend Growth 📈
The growth analysis of PSA's dividends provides insights into future potential returns. Sustained growth ensures that dividends keep pace with or exceed inflation, preserving investor purchasing power over time. Recent growth rates reflect consistent performance by PSA in enhancing shareholder value.
| Time | Growth |
|---|---|
| 3 years | 14.47% |
| 5 years | 8.45% |
The average dividend growth is 8.45% over 5 years, indicating moderate but steady dividend growth.
Payout Ratio ✅
The payout ratio metrics are both reflective of PSA's approach to rewarding shareholders while sustaining growth investments. However, a high EPS-based payout ratio requires careful oversight to ensure future dividend sustainability without impinging upon business flexibility.
| Key figure | Ratio |
|---|---|
| EPS-based | 127.16% |
| Free cash flow-based | 81.73% |
The EPS payout ratio of 127.16% suggests PSA is distributing more than its earnings, a typical scenario for REITs, necessitating a close watch on its cash flow and debt levels.
Cashflow & Capital Efficiency 📈
Assessing cash flow and capital efficiency underscores PSA's operational health and its capability to sustain dividends amidst investments. Key figures highlight consistent cash generation, vital for ongoing shareholder returns.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.16% | 5.20% | 5.41% |
| Earnings Yield | 3.95% | 4.01% | 8.86% |
| CAPEX to Operating Cash Flow | 13.43% | 14.20% | 14.75% |
| Stock-based Compensation to Revenue | 0.95% | 0.92% | 1.36% |
| Free Cash Flow / Operating Cash Flow Ratio | 86.57% | 85.80% | 85.25% |
PSA's consistent cash flow generation reflects a stable capital structure, crucial for sustaining its dividend policies and financing future growth.
Balance Sheet & Leverage Analysis ⚠️
Detailed balance sheet analysis provides insights into PSA's financial leverage and risk exposure. Key ratios indicate manageable debt levels, underpinning its ability to finance dividends and capital expenditures.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.96 | 0.91 | 0.68 |
| Debt-to-Assets | 0.47 | 0.46 | 0.39 |
| Debt-to-Capital | 0.49 | 0.48 | 0.41 |
| Net Debt to EBITDA | 2.54 | 2.61 | 1.13 |
| Current Ratio | 1.77 | 0.76 | 1.51 |
| Quick Ratio | 0.76 | 0.62 | 1.51 |
| Financial Leverage | 2.03 | 1.98 | 1.74 |
PSA's financial leverage continues to be manageable, though monitoring is required for sustainable long-term operations and dividends.
Fundamental Strength & Profitability ✅
Through analyzing PSA's fundamentals, investors gain insight into its efficiency and profitability that support its dividend viability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 21.33% | 21.45% | 43.17% |
| Return on Assets | 10.49% | 10.85% | 24.78% |
| Net Margin | 44.13% | 47.55% | 103.99% |
| Gross Margin | 73.21% | 74.60% | 74.82% |
| EBIT Margin | 50.61% | 52.51% | 108.00% |
| EBITDA Margin | 74.67% | 73.98% | 129.24% |
| Research & Development to Revenue | 0% | 0% | 0.42% |
PSA demonstrates substantial profitability with returns on equity and assets significantly bolstering its dividend capabilities and investor appeal.
Price Development 📉
Dividend Scoring System 🏆
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 31/40
Rating 🗣️
Public Storage presents a solid investment choice for dividend-focused investors, underpinned by a remarkable dividend history and consistent yields. While payout ratios are elevated, PSA’s financial stability and robust cash flow coverage mitigate risk, endorsing it as a recommended holding for consistent income.