PSA vs SPG: Dividend Yield, Growth & Safety Comparison
Public Storage (PSA) and Simon Property Group Inc. (SPG) are both in the Real Estate sector, making them natural rivals for dividend investors. Both stocks offer similar yields — PSA at 4.11% and SPG at 4.36%. Both stocks show similar dividend growth rates, each around 10.7% over the past five years. PSA holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | PSA | SPG |
|---|
| Dividend Yield | 4.11% | 4.36% |
| Annual Dividend | $12.00 | $8.55 |
| 5-Year CAGR | 10.7% | 10.0% |
| Payout Ratio | 1% | 60% |
| Consecutive Years | 0 | 4 |
| Price | $296.17 | $197.66 |
Yield Comparison
Simon Property Group Inc. (SPG) currently yields 4.36%, which is attractive for the broader market. That's 0.25% more than Public Storage (PSA), which yields 4.11%. In dollar terms, SPG pays $8.55/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 SPG's 10.0%. 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%. SPG: Dividend growth is slowing — the 3-year CAGR of 7.1% trails the 5-year rate of 10.0% and the 10-year rate of 6.4%.
Dividend Safety
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. SPG's dividend safety is rated "Moderate." The payout ratio of 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x. PSA's payout ratio of 1% is more conservative than SPG's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in SPG generates approximately $436/year in dividend income, compared to $411/year from PSA — a difference of $25/year. At $100,000, that gap widens to $250/year.
Verdict
- Best for income: SPG
- Best for growth: PSA
- Best for safety: PSA
Frequently Asked Questions
Which has a higher dividend yield, PSA or SPG?
Simon Property Group Inc. (SPG) has a higher dividend yield of 4.36% compared to Public Storage (PSA) at 4.11%.
Is PSA or SPG a better dividend growth stock?
Public Storage has the stronger dividend growth with a 5-year CAGR of 10.7%, compared to Simon Property Group Inc.'s 10.0%.
Which is safer for dividend income, PSA or SPG?
Public Storage's dividend safety is rated "Safe" while Simon Property Group Inc. is rated "Moderate." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. The payout ratio of 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x.
How much income does $10,000 in PSA vs SPG generate?
A $10,000 investment in PSA generates approximately $411/year in dividends, while the same amount in SPG generates about $436/year.
Which has a lower payout ratio, PSA or SPG?
Public Storage has a lower payout ratio of 1% compared to Simon Property Group Inc.'s 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PSA vs SPG: which is better for retirement income?
It depends on your priorities. SPG for current income, PSA for dividend growth, PSA for safety. Many retirement investors hold both for diversification.
PSA Dividend Analysis | SPG Dividend Analysis | All Comparisons | Comparison Tool