Extra Space Storage raises dividend by 20%, to lift the dividend yield above its REIT peer group

Shares of Extra Space Storage Inc. rose 0.4% in premarket trading after the real estate investment trust (REIT) that owns and operates self-storage properties raised its dividend by 20% to boost its implied yield above its peer group. The company declared a quarterly dividend of $1.50 a share, up from $1.25 a share, with the new dividend payable March 31 to shareholders of record on March 15. Based on Tuesday’s stock closing price of $192.18, the new annual dividend rate increases the implied dividend yield to 3.12% from 2.60%. That compares with the yield for the SPDR Real Estate Select Sector ETF of 3.00% and the implied yield for the S&P 500 of 1.42%. The stock has slipped 3.3% over the past three months through Tuesday, while the REIT ETF has declined 6.3% and the S&P 500 has lost 4.9%.

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