O vs PSA: Dividend Yield, Growth & Safety Comparison
Realty Income Corporation (O) and Public Storage (PSA) are both in the Real Estate sector, making them natural rivals for dividend investors. O edges ahead on yield at 5.02% versus PSA's 4.11%. For dividend growth, PSA leads with a 5-year CAGR of 10.7% versus O's 8.2%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | O | PSA |
|---|
| Dividend Yield | 5.02% | 4.11% |
| Annual Dividend | $3.21 | $12.00 |
| 5-Year CAGR | 8.2% | 10.7% |
| Payout Ratio | 3% | 1% |
| Consecutive Years | 0 | 0 |
| Price | $65.62 | $296.17 |
Yield Comparison
Realty Income Corporation (O) currently yields 5.02%, which is attractive for the broader market. That's 0.91% more than Public Storage (PSA), which yields 4.11%. In dollar terms, O pays $3.21/share annually versus PSA's $12.00/share.
Dividend Growth
Over the past five years, PSA has grown its dividend at a 10.7% CAGR compared to O's 8.2%. O: Dividend growth is accelerating — the 3-year CAGR of 11.4% exceeds the 5-year rate of 8.2% and the 10-year rate of 5.6%. 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
O's dividend safety is rated "Safe." The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x. 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 — O at 3% and PSA at 1%.
Income Comparison
A $10,000 investment in O generates approximately $502/year in dividend income, compared to $411/year from PSA — a difference of $91/year. At $100,000, that gap widens to $910/year.
Verdict
- Best for income: O
- Best for growth: PSA
Frequently Asked Questions
Which has a higher dividend yield, O or PSA?
Realty Income Corporation (O) has a higher dividend yield of 5.02% compared to Public Storage (PSA) at 4.11%.
Is O or PSA a better dividend growth stock?
Public Storage has the stronger dividend growth with a 5-year CAGR of 10.7%, compared to Realty Income Corporation's 8.2%.
Which is safer for dividend income, O or PSA?
Realty Income Corporation's dividend safety is rated "Safe" while Public Storage is rated "Safe." The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x. 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 O vs PSA generate?
A $10,000 investment in O generates approximately $502/year in dividends, while the same amount in PSA generates about $411/year.
Which has a lower payout ratio, O or PSA?
Public Storage has a lower payout ratio of 1% compared to Realty Income Corporation's 3%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
O vs PSA: which is better for retirement income?
It depends on your priorities. O for current income, PSA for dividend growth. Many retirement investors hold both for diversification.
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