AMT vs PSA: Dividend Yield, Growth & Safety Comparison
American Tower Corp /Ma/ (AMT) and Public Storage (PSA) are both in the Real Estate sector, making them natural rivals for dividend investors. PSA edges ahead on yield at 4.11% versus AMT's 3.76%. For dividend growth, PSA leads with a 5-year CAGR of 10.7% versus AMT's 6.9%. Both stocks carry a "Safe" dividend safety rating. AMT is a Dividend Contender with 14 years of consecutive increases.
Key Metrics Comparison
| Metric | AMT | PSA |
|---|
| Dividend Yield | 3.76% | 4.11% |
| Annual Dividend | $6.72 | $12.00 |
| 5-Year CAGR | 6.9% | 10.7% |
| Payout Ratio | 1% | 1% |
| Consecutive Years | 14 | 0 |
| Price | $190.81 | $296.17 |
Yield Comparison
Public Storage (PSA) currently yields 4.11%, which is attractive for the broader market. That's 0.34% more than American Tower Corp /Ma/ (AMT), which yields 3.76%. In dollar terms, PSA pays $12.00/share annually versus AMT's $6.72/share.
Dividend Growth
Over the past five years, PSA has grown its dividend at a 10.7% CAGR compared to AMT's 6.9%. AMT: Dividend growth is slowing — the 3-year CAGR of 2.7% trails the 5-year rate of 6.9% and the 10-year rate of 13.5%. PSA: Dividend growth is slowing — the 3-year CAGR of 0.0% trails the 5-year rate of 10.7% and the 10-year rate of 5.7%.
Dividend Safety
AMT's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x. PSA's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. Both have similar payout ratios — AMT at 1% and PSA at 1%.
Income Comparison
A $10,000 investment in PSA generates approximately $411/year in dividend income, compared to $376/year from AMT — a difference of $35/year. At $100,000, that gap widens to $350/year.
Verdict
- Best for income: PSA
- Best for growth: PSA
Frequently Asked Questions
Which has a higher dividend yield, AMT or PSA?
Public Storage (PSA) has a higher dividend yield of 4.11% compared to American Tower Corp /Ma/ (AMT) at 3.76%.
Is AMT or PSA a better dividend growth stock?
Public Storage has the stronger dividend growth with a 5-year CAGR of 10.7%, compared to American Tower Corp /Ma/'s 6.9%.
Which is safer for dividend income, AMT or PSA?
American Tower Corp /Ma/'s dividend safety is rated "Safe" while Public Storage is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x. The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
How much income does $10,000 in AMT vs PSA generate?
A $10,000 investment in AMT generates approximately $376/year in dividends, while the same amount in PSA generates about $411/year.
Is AMT or PSA a Dividend Aristocrat?
American Tower Corp /Ma/ is a Dividend Contender with 14 consecutive years of increases. Public Storage does not currently qualify for aristocrat status.
Which has a lower payout ratio, AMT or PSA?
American Tower Corp /Ma/ has a lower payout ratio of 1% compared to Public Storage's 1%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AMT vs PSA: which is better for retirement income?
It depends on your priorities. PSA for current income, PSA for dividend growth. Many retirement investors hold both for diversification.
AMT Dividend Analysis | PSA Dividend Analysis | All Comparisons | Comparison Tool