Key Takeaways
- Public Storage and Extra Space Storage both raised their 2026 Core FFO guidance in late October, and neither has raised its dividend since fiscal 2023.
- Extra Space yields 4%, against 3.7% for Public Storage, and grew its dividend faster from fiscal 2020 to fiscal 2025.
- Public Storage’s net debt is 3.3x EBITDA, against 5.8x at Extra Space.
- With both dividends flat, the deciding question is which one has room to start growing again.
Public Storage (PSA) and Extra Space Storage (EXR) both raised their 2026 outlooks in late October.
Neither company raised its dividend, though. Public Storage declared another $3.00 quarterly payment on Nov. 3, the rate it has paid since fiscal 2023. Extra Space has paid $1.62 a quarter since then too.
So with Extra Space yielding more and Public Storage carrying far less debt, which is the better dividend stock?
| Metric | Public Storage (PSA) | Extra Space Storage (EXR) |
|---|---|---|
| Dividend yield | 3.7% | 4.0% |
| Annual dividend | $12.00 | $6.48 |
| Dividend growth, fiscal 2020-2025 | 8.4% a year | 12.5% a year |
| AFFO payout ratio, latest actual | 75% (fiscal 2025) | 67% (fiscal 2022) |
| AFFO payout ratio, consensus | 76% (fiscal 2026) | 87% (fiscal 2024) |
| Net debt/EBITDA, LTM | 3.3x | 5.8x |
| Interest coverage, LTM | 6.4x | 2.5x |
Source: TIKR, Nov. 5, 2026.
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Public Storage has room to spare
Public Storage’s dividend is well-covered. It took 75% of AFFO in fiscal 2025, and it takes a steady 76% of the $15.79 a share that analysts expect for fiscal 2026. AFFO per share has outgrown the dividend over the past decade:
AFFO rose from $9.39 a share in fiscal 2016 to $15.97 in fiscal 2025, while the dividend rose in steps. That cut the payout ratio from 82% in fiscal 2020 to 75% in fiscal 2025. (Fiscal 2022 is the one year it paid out more than its AFFO: $21.15 a share against $13.56.)
Its growth is coming from deals. Same-store revenue and NOI each rose just 0.5% in the third quarter of 2026 from a year earlier, while the NSA and PS Canada acquisitions added over 1,100 stores. On Oct. 26, it raised its full-year Core FFO guidance to $16.90-$17.10 a share from $16.75-$17.05.
At its 3.7% yield, $10,000 pays $370 a year. At the 8.4% a year it raised its dividend from fiscal 2020 to fiscal 2025, that $10,000 pays about $768 in year 10, a 7.7% yield on your cash.
Extra Space has the momentum
Public Storage’s existing stores are flat, while Extra Space’s are picking up. Its same-store revenue rose 2.7% and same-store NOI rose 4.6% in the third quarter of 2026 from a year earlier. On Oct. 27, it raised its full-year Core FFO guidance to $8.40-$8.50 a share, from $8.25-$8.40.
Its dividend has a thinner cushion. The AFFO payout ratio was 67% in fiscal 2022. Analysts’ consensus for fiscal 2024 put AFFO at $7.48 a share, which makes today’s $6.48 dividend a tight 87% payout. The cushion has narrowed since fiscal 2022:
The dividend more than doubled from $2.93 a share in fiscal 2016 to $6.48 in fiscal 2023, and it stayed there through fiscal 2025. AFFO per share went from $8.90 in fiscal 2022 to an estimated $7.68 for fiscal 2025.
At its 4.0% yield, $10,000 pays $401 a year. At the 12.5% a year it raised its dividend from fiscal 2020 to fiscal 2025, that $10,000 pays about $1,155 in year 10, an 11.6% yield on your cash.
So which dividend wins?
Public Storage is the better dividend stock. With both dividends flat, it has far more room to start raising again, both in its payout and on its balance sheet: its debt is 3.3x EBITDA, and its interest coverage is 6.4x.
Extra Space’s debt is heavier, and it has been climbing:
Net debt went from 5.4x EBITDA in fiscal 2021 to 6.0x in fiscal 2025. Over the last twelve months, its EBIT covered interest just 2.5x.
Extra Space’s dividend isn’t in trouble. It pays the bigger check and its stores are growing faster. It’s also cheaper, at 19x forward AFFO against 21x for Public Storage, and at the two companies’ five-year paces, its income stays ahead every year. But neither dividend is growing at those paces now. With both flat, Extra Space’s lead on $10,000 is still just $31 a year in year 10. I’ll give up $31 a year for the wider cushion and the lighter debt.
Of course, Public Storage still has to make its NSA deal pay. Management expects $110 million to $130 million of run-rate synergies within three to four years, and that money could get its dividend growing again.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
