Dividends4Life: Should You Buy This 3.8%-Yielding Storage REIT?

Should You Buy This 3.8%-Yielding Storage REIT?

Posted by D4L | Thursday, January 03, 2019 | | 0 comments »

This company is a REIT in the storage sector. It has grown cash flow at a rapid clip on the back of acquisitions. The storage REIT outearns its dividend with A/FFO. Shares are richly valued. I'd wait for a drop before buying. An investment in the stock yields 3.8 percent...

CubeSmart (CUBE) is a promising real estate investment trust in the storage sub-sector. The storage REIT has seen strong cash flow growth thanks to its aggressive stance on acquisitions. CubeSmart's AFFO and dividend have both grown rapidly in the last several years, which makes CUBE an interesting income play for DGI investors. Though I like the REIT's business, shares are quite expensive, and continue to reflect a rather unappealing risk/reward combination. An investment in CubeSmart at today's price point yields 3.8 percent.

Source: Seeking Alpha

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