Extra Space Storage (EXR) Stock

The high valuations in the market make it difficult to find good investments, but dividend stocks still provide stability and growth for those investing for the long term. I've found three excellent dividend stocks that have strong fundamentals, appealing yields, and the ability to withstand the current expensive market. These choices offer a good mix of income and growth, making them suitable for managing tough market conditions while increasing wealth over time.

The S&P 500 has increased by around 25% in the last year. This growth is due to a strong economy and slowing inflation, which has allowed the Federal Reserve to begin lowering interest rates.

Investing in dividend stocks can help you earn passive income. This income can increase over time if you reinvest the dividends and the company keeps raising its dividend annually.

This year, the average U.S. REIT had a return of 9%, or 13% when including dividends, based on the MSCI U.S. REIT index. Analysts from KeyBanc Capital Markets predict that next year will be quite similar for real estate trusts. They expect the total return for the average REIT in 2025 to be between 5% and 15%.

EXR benefits from a strong brand reputation, smart acquisitions, positive demographic trends, and a solid financial position. However, they are facing challenges with fewer new customers and an oversupply of units.

SALT LAKE CITY, Dec. 2, 2024 /PRNewswire/ -- Extra Space Storage Inc. ("Extra Space") (NYSE: EXR), a top owner and operator of self-storage facilities in the U.S. and part of the S&P 500, has announced that its operating partnership, Extra Space Storage LP, will offer $300 million in additional 5.700% senior notes due in 2028. These new notes will be added to the previously issued $500 million of the same type of senior notes due in 2028.

SALT LAKE CITY, Nov. 15, 2024 /PRNewswire/ -- Extra Space Storage Inc. (the "Company") (NYSE: EXR) has announced that its board of directors has approved a dividend of $1.62 per share for the fourth quarter of 2024. This dividend will be paid on December 31, 2024, to shareholders who are on record as of the end of business on December 16, 2024.

Storage REITs have performed similarly to the average REIT, with Extra Space Storage demonstrating significant growth and a good yield in a high-demand market. The merger between EXR and Life Storage has improved funds from operations (FFO) but has also raised costs, leading to a modest forecast for FFO per share growth and an increase in occupancy rates. While EXR has a strong balance sheet and good liquidity, its dividend yield is lower than the "no-risk" rate, and the payout ratio is considered somewhat high.

EXR's results for the third quarter show increased revenues and a boost in occupancy rates. However, they faced challenges due to higher interest expenses.