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Tuesday, March 2, 2010

Dividend Stock Watch

The self-storage REIT is looking good to buy, but if you didn't already have Sotheby's, you might want to wait for weakness.

Public Storage Beats View With FFO

Self-storage REIT Public Storage ( PSA - news - people ) said Saturday that its fourth-quarter funds from operations (FFO) fell 14% from last year, but results still beat analyst expectations.The Glendale, Calif.-based company reported fourth-quarter FFO of $213.98 million, or $1.27 per share, compared with $249.66 million, or $1.48 per share, in the year-ago period.

On average Wall Street analysts expected smaller FFO of $1.25 per share. Revenue fell 3% from last year, to $402.88 million.

Public Storage shares were up 2.9% to $84.58.
The Bottom Line

We have been recommending shares of PSA since Sept. 16, when the stock was trading at $74.58. The company will now have a 3.16% dividend yield, based on the higher dividend payout and Friday's closing stock price of $74.58.

Public Storage is a "recommended" dividend stock, holding a Dividend.com rating of 3.5 out of five stars.
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Sotheby's Shares Jump After Profit Blows Away Expectations

Auction house Sotheby's ( BID - news - people ) said Monday that it swung to a fourth-quarter profit, helped by higher revenue and lower costs, easily beating analyst estimates.

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