| The Yield Hunter Let's make some money and sleep well at night |
| Public Storage Commercial/Industrial REIT Continued from the Front Page |
Copyrights 2006-2007 SGM Publishing |
| Update 4/24/2008 |
As buyers of the preferred securities we know that the dividends we receive have preference over the common share
dividends that are paid----and while PSA's common dividend yield is small--the absolute dollars paid out to common holders is
huge.
The company pays out over $325 million in dividends to common holders and something near $225 million to preferred
holders. This means that the common dividends would have to totally be stopped before the companies preferred shares
would have any dividend cuts. This gives preferred holders a good level of safety in a weak econony.
In addition to the above we think that the self storage business is a pretty good business and would't expect huge hits to
revenues from a weak economy.
There are at least 20 issues of PSA Preferred available. These are your typical $25.00 issue price and are callable 5 years
after issue at the companies discretion.
The issues carry current yields of around 7.5%---this should leave some room for capital gains also as many of the issues
trade in the $20-24 area.
Do some due diligence by reading the 10K here if this is attractive to you.
We believe that we may purchase a small chunk of one of these issues for a permanent holding--although we have not done
so at this time.
dividends that are paid----and while PSA's common dividend yield is small--the absolute dollars paid out to common holders is
huge.
The company pays out over $325 million in dividends to common holders and something near $225 million to preferred
holders. This means that the common dividends would have to totally be stopped before the companies preferred shares
would have any dividend cuts. This gives preferred holders a good level of safety in a weak econony.
In addition to the above we think that the self storage business is a pretty good business and would't expect huge hits to
revenues from a weak economy.
There are at least 20 issues of PSA Preferred available. These are your typical $25.00 issue price and are callable 5 years
after issue at the companies discretion.
The issues carry current yields of around 7.5%---this should leave some room for capital gains also as many of the issues
trade in the $20-24 area.
Do some due diligence by reading the 10K here if this is attractive to you.
We believe that we may purchase a small chunk of one of these issues for a permanent holding--although we have not done
so at this time.
| All issues callable at $25.00/Share plus accrued dividend Coupon Rate times $25.00 equals annual dividend Prices above $25.00 means the current yield is lower than the coupon rate Prices below $25.00 means the current yield is higher than the coupon rate |
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