Bought: Public Storage Preferred F – PSA.F

Bought: Public Storage Preferred F – PSA.Fpublic storage dailydividendinvestor.com

After having my Wells Fargo Preferred (ticker: WSF) redeemed back in late April I had planned to sit tight on my new found cash and wait for a market pull back before redeploying any more funds. However, after reviewing my Investment Advisory Rules for the Daily Dividend Account I decided that I should put some cash back to work sooner rather than later.

While I have positions in a number REIT’s (Real Estate Investment Trusts), I did not have specific exposure to the self-storage market. Although the downturn in the economy has affected some people’s ability to continue to maintain and pay rent on their storage units – the industry as a whole continues to grow quickly.

From a business owner’s prospective, owning storage units is a no brainer. You build 100 or more  10′ x 10′ rooms with steel walls and a roll-up door, wrap the building with a security fence and add a 24 hour guard. After renting them out at $1/sq ft per month or more – you can sit back and collect checks all day long! No pools to clean, no toilets to fix, no loud parties to break up… the units practically take care of themselves.

When your tenant skipsstorage wars public storage investor daily dividend passive income stream treasure gold finders town without paying – no problem! Just call in Don and Laura Dotson – auctioneers from A&E’s Storage Wars who along with Darrell, Jarrod, Dave and Barry will gladly take your ex-tenant’s goods off your hands, and pay you for their trouble! It’s amazing what treasures they find in these storage units – some times they even find gold!

With such a simple business model, I was looking for a self-storage pure play that I could move some funds into. After a little research, I found that Public Storage (ticker: PSA) uses preferred stock offerings to finance new and ongoing storage operations. I’ve always liked preferred shares because of their inherent price stability. If I can find well run company offering a good 6%+ cashflow dividend while trading below par value ($25) then that’s at least a “double” in my book.

stock price increase daily dividend passive income stream cash gold hard assets flowAfter a little research I decided upon the PSA preferred “F” shares – currently yielding ~6.5% and trading just under par value at ~$24.90. I picked up 25 shares and redeployed about $625, which will generate $10.08 every three months starting in June, 2011. The downside of purchasing these shares is that they have been redeemable since August 2010, and like my Wells Fargo shares, could be called at any time. It’s a risk I’m willing to take.

Advertisements

7 thoughts on “Bought: Public Storage Preferred F – PSA.F

  1. Hi,I would just like to say what a great Article by Kim Roach it’s the first time i have ever read anything by Kim but i am now a fan of Kim’s.Thanks very much Kim for all of the tips you gave us.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.