Public Storage Preferred Shares Yield Above 6% Amid Discounts

Public Storage's shares yield more than 6%, highlighting a considerable discount. Given the current dividend and performance factors, investors should be cautious about stock price impacts.

Date: 21-02-2025

AI Rating: 5

Dividend Yield and Discount Analysis
Public Storage's 3.875% Dep Shares Cumulative Preferred Share Series N (PSA.PRN) is currently yielding above the 6% mark, with its quarterly dividend annualized at $0.9688. This yield is lower than the average yield of 7.83% noted in the "Real Estate" preferred stock category, indicating that investors are earning less relative to their peers.

Additionally, PSA.PRN is trading at a significant discount of 34.16% to its liquidation preference amount, which is notably higher than the average discount of 12.51% within the same category. This suggests that market sentiment may be bearish regarding Public Storage's preferred shares, which could lead to implications on the stock price as investors evaluate the risk versus return profile.

In terms of performance, during the trading on Friday, PSA.PRN was noted to have increased by about 0.4% on the day, in contrast to a decline of approximately 0.8% observed in the common shares (Symbol: PSA). This divergence might signal a shift in investor preferences towards safer income-generating assets, possibly due to economic uncertainty.

Stocks: PSA