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In February, I named CubeSmart (NYSE:CUBE) as one of the 12 top REITs for the coming 12 months. I also identified the Storage REIT (real estate investment trust) sector as one of 7 sectors
CubeSmart: Dividend Increases May Be In Store For This Fast Grower
Summary
- In February, I named CubeSmart as one of the 12 top REITs for the coming 12 months.
- Despite stellar earnings and cash flow growth, CUBE's share price has languished, losing (-25.3)% thus far this year.
- The selloff is not reflective of CubeSmart's performance, but rather of the broader market's stampede toward yield amid an environment of rising inflation and interest rates.
- Further substantial increases in the company's dividend are likely.
- This article examines growth, balance sheet, dividend, and valuation metrics for this bona fide FROG.
- This idea was discussed in more depth with members of my private investing community, Hoya Capital Income Builder. Learn More »
Philip Eric Jones is a financial writer, educator, artist, and inspirational speaker. He writes about investing for retirement with a focus on Growth stocks and REITs.
He is a contributor to the investing group iREIT®+HOYA Capital. The service features a team of analysts focusing on real income-producing asset classes that offer the opportunity for reliable income, diversification, and inflation hedging. Learn More.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of CUBE, NSA, LSI, VNQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
A Buy, Sell, or Hold rating in this article does not constitute a Buy, Sell, or Hold recommendation. All investors should do their own due diligence, before investing in any stock.
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