Public Storage
All it takes is one natural disaster to really prove how much people depend on storage facilities. That’s why for the real estate sector we picked Public storage, a company valued at a whopping $35.2 billion with a 4.0% dividend yield. It’s no surprise they’re the world’s largest owner of self-storage facilities with paid dividends without interruption for close to 30 years.
It’s no small wonder that they’re doing so well, either. Their brand is easily recognizable, they have locations with high barriers to entry and they benefit from economies of scale. Since they require low operating and maintenance costs, self-storage warehouses generate excellent cash flow.
Keep in mind the fact that the industry is dealing with a short-term rise in supply too. Right now, acquiring customers is a highly competitive affair. Despite this, PSA has managed to maintain a strong balance sheet.
As far as the economic recession of 2007-2009, customers have prioritized making their self-storage payments even then. Delinquency rates sat at around 2% so you can trust that most Americans wouldn’t just give up on their belongings, even when times are tough.
