Dividend Stocks

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Public Storage - >>> 10 Dividend Growth Stocks That Simply Print Money



http://www.kiplinger.com/slideshow/investing/T018-S015-10-dividend-growth-stocks-that-simply-print-money/index.html?rid=SYN-yahoo&rpageid=16086



Public Storage



Symbol: PSA

Dividend yield: 3.7%

FCF margin: 58.2%

5-year annual dividend growth: 15%



Public Storage is America’s largest storage unit REIT. It was founded in 1972, and now owns more than 2,500 properties in 38 states and seven European countries, serving over 1 million customers.

The great thing about this REIT, though, is that despite its enormous size, (which makes for very consistent cash flow to protect the fast growing dividend), there is plenty of growth runway ahead of it. That’s because the U.S. storage industry is incredibly fragmented, with Public Storage owning just 6% of the total market share in America.

That doesn’t stop management from turning its competitive advantages — namely its commanding lead in fast-growing markets such as the West Coast, Texas and Florida into a massive free cash flow machine.

This is courtesy of the month-to-month nature of the contracts PSA signs with customers, which allow it to consistently raise rents, and maximize margins and returns on shareholder capital.

Better yet, with a low 72.8% AFFO payout ratio, this is one of the most secure dividends in all of REIT-dom. PSA is well-situated to continue growing dividends at high single digits to low double digits for years to come.

And with an ultra-low beta of 0.45, indicating that this stock is 55% less volatile than the market in general, Public Storage offers dividend lovers one of the best risk-adjusted total return potentials of any dividend growth stock in America

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