Acquisition PSA

Public Storage CompanyOriginally I purchased a stake in Public Storage way back in November of 2013 for 10 shares at a price of $154.66. Skipping forward, I then ended up selling it this past November 2014 due to our new home purchase down payment at a price of 186.80. I have always felt PSA was a very solid REIT with a great longterm fundamentals and plenty of room to grow into something much bigger. Fortunately for me and perhaps for you, the price of PSA has dropped pretty nicely by around 9% from its high. The correction couldn’t have come at a better time as I was able to snag the shares at a very close to original value I sold them this past year. Though, it was a tough purchase due to reasonably high valuation which makes it that much harder keeping myself accountable, but I figured I am paying pretty close what I paid for in 2013, so what the hell.

Founded in 1972, Public Storage (PSA) is a real estate investment trust (REIT) that engages in acquisition, development, ownership, and operation of self storage facilities. Today, it operates in over 2,200 different locations in United States and in Europe. It is the largest owner and operator self-storage facilities that serve over 1 million costumers. Based on number of tenants, Public Storage is among the largest landlords in the world.

  • Dividend Yield: 3.6%
  • 3Yr Dividend Growth Rate: 15.3%
  • 5Yr Dividend Growth Rate: 20.2%
  • Payout Ratio: 78.5%
  • P/E: 34.5
  • Consecutive Years of Dividend Raises: 5

I purchased 8 shares for the price of $188.60 adding $54.40 to my annual dividend income.

This is the 5th consecutive time I am initiating a stock acquisition this year. The transaction is my initial purchase of PSA back into the portfolio. Furthermore, the acquisition makes it the 29th company I am invested in. Currently, PSA ownership stake represents to be around 2.3% of my current portfolio.

The company did announce a dividend raise this past quarter of 21.4%.

The 12-month dividend income increased to $2,382.

Thank you for reading & have a great day!

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2 Comments

  1. DivHut on June 11, 2015 at 01:06

    I think PSA is a solid buy. First of all, REITs are the word of the day as seemingly every dividend blogger out there is buying into health or retail REITs. Now you announce your PSA buy which is another great long term REIT that is found in all the large real estate ETFs (VNQ, RWR, IYR) as a major holding. Congrats on this “new” buy. By the way I just added your blog to my blogroll. Can’t believe it wasn’t there all this time. Thanks for sharing your recent buy.

    • DividendVet on June 11, 2015 at 09:56

      Yeah, sure looks like everyone is buying them. All this interest rate hike bs news talk is bringing in some very hefty bargains for many.

      Thanks for adding me to the blogroll, much appreciated!

      Take care.

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