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Public Storage Preferred Shares Yield Over 6% Amid Discounts

Public Storage's preferred shares are yielding above 6%, raising concerns as they trade at a 32.68% discount to liquidation preference. Investors should consider the implications for stock prices.

Date: 
AI Rating:   5

Dividend Yield and Discount Analysis
Public Storage's 4.00% Dep Shares Cumulative Preferred Share Series P (PSA.PRP) are yielding above 6%, reflecting potential concerns for investors. The shares traded as low as $16.63, offering an annualized dividend of $1.00, yet they are significantly underperforming compared to the average 7.79% yield found in the Real Estate preferred stock category.

This situation is compounded by the fact that PSA.PRP is trading at a staggering 32.68% discount to its liquidation preference amount, while the average discount in the Real Estate category is only 12.55%. Such a discount means that investors are purchasing these shares at a significantly lower value than their intrinsic worth, which is generally seen in distressed situations or when market confidence is low.

On the trading day mentioned, PSA.PRP saw a decline of about 1.1%, while the common shares (PSA) saw a slight increase of 0.9%. This disparity between preferred and common shares could indicate a lack of investor confidence in the preferred shares, potentially impacting Public Storage's overall stock performance.

Stocks:  PSA