PLD vs PSA: Dividend Yield, Growth & Safety Comparison
Prologis, Inc. (PLD) and Public Storage (PSA) are both in the Real Estate sector, making them natural rivals for dividend investors. PSA offers a significantly higher 4.11% yield compared to PLD's 2.88%, a gap of 1.23%. For dividend growth, PLD leads with a 5-year CAGR of 12.5% versus PSA's 10.7%. Both stocks carry a "Safe" dividend safety rating. PLD is a Dividend Contender with 12 years of consecutive increases.
Key Metrics Comparison
| Metric | PLD | PSA |
|---|
| Dividend Yield | 2.88% | 4.11% |
| Annual Dividend | $4.04 | $12.00 |
| 5-Year CAGR | 12.5% | 10.7% |
| Payout Ratio | 1% | 1% |
| Consecutive Years | 12 | 0 |
| Price | $138.93 | $296.17 |
Yield Comparison
Public Storage (PSA) currently yields 4.11%, which is attractive for the broader market. That's 1.23% more than Prologis, Inc. (PLD), which yields 2.88%. In dollar terms, PSA pays $12.00/share annually versus PLD's $4.04/share.
Dividend Growth
Over the past five years, PLD has grown its dividend at a 12.5% CAGR compared to PSA's 10.7%. PLD: Dividend growth is slowing — the 3-year CAGR of 7.8% trails the 5-year rate of 12.5% and the 10-year rate of 10.2%. 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
PLD'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 — PLD at 1% and PSA at 1%.
Income Comparison
A $10,000 investment in PSA generates approximately $411/year in dividend income, compared to $288/year from PLD — a difference of $123/year. At $100,000, that gap widens to $1230/year.
Verdict
- Best for income: PSA
- Best for growth: PLD
Frequently Asked Questions
Which has a higher dividend yield, PLD or PSA?
Public Storage (PSA) has a higher dividend yield of 4.11% compared to Prologis, Inc. (PLD) at 2.88%.
Is PLD or PSA a better dividend growth stock?
Prologis, Inc. has the stronger dividend growth with a 5-year CAGR of 12.5%, compared to Public Storage's 10.7%.
Which is safer for dividend income, PLD or PSA?
Prologis, Inc.'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 PLD vs PSA generate?
A $10,000 investment in PLD generates approximately $288/year in dividends, while the same amount in PSA generates about $411/year.
Is PLD or PSA a Dividend Aristocrat?
Prologis, Inc. is a Dividend Contender with 12 consecutive years of increases. Public Storage does not currently qualify for aristocrat status.
Which has a lower payout ratio, PLD or PSA?
Prologis, Inc. 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.
PLD vs PSA: which is better for retirement income?
It depends on your priorities. PSA for current income, PLD for dividend growth. Many retirement investors hold both for diversification.
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