Summary: Public Storage (NYSE: PSA) is a leading self-storage real estate investment trust (REIT) with a strong track record of stability and growth. The most convenient way to invest in it is through a reputable online broker like eToro.
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Public Storage is one of the largest and most well-known REITs in the United States. Founded in 1972, the company specializes in owning, operating, and acquiring self-storage facilities across the country.
With over 2,500 storage locations and a vast real estate portfolio, Public Storage has established itself as a reliable and income-generating investment option. Its primary business model involves renting out storage units to individuals and businesses.
The company generates revenue through monthly rent payments from tenants, making it a stable income source. This income is then distributed to investors in the form of dividends, which is a significant draw for many investors interested in PSA stock.
How to buy Public Storage stock: Step-by-step
Investing in REITs, Public Storage included, is a straightforward process, and you can find out how to do it safely and fast in our step-by-step guide right here:
Step 1: Choose a brokerage
Before you can invest in Public Storage stock, you’ll need to open an account with a brokerage firm. A brokerage acts as an intermediary that facilitates your stock transactions, thus you should carefully research and compare each available option.
Our go-to broker for investing in self-storage REITs is eToro, which is one of the most popular platforms with over 30 million users. It’s also licensed by FinCEN, providing a secure investing experience, which only adds to its many solid features, such as:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- The option to purchase fractional shares;
- A user-friendly platform that simplifies the trading experience.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Step 2: Fund your account
With your brokerage account established, you’ll need to fund it to buy PSA stock. Therefore, follow these steps to add money to your account:
- Link a bank account: Connect your bank account to your brokerage account. This allows you to transfer funds easily between the two;
- Transfer funds: Initiate a transfer from your bank account to your brokerage account. The funds will typically be available for trading within a few business days;
- Set a budget: Determine how much money you want to invest in Public Storage stock. The thing is—it’s important to establish a budget and not invest more than you can afford to lose.
Step 3: Place your order
Now that your brokerage account is funded, you can place your order to buy Public Storage stock. Follow these steps:
- Choose order type: Decide whether you want to place a market order (buy the stock at the current market price) or a limit order (specify the maximum price you’re willing to pay). Note that market orders execute immediately, while limit orders may take some time.
- Place your order: Using your brokerage’s trading platform, enter the required information, including the number of shares you want to purchase and the order type. Finally, review the details carefully and confirm your order.
Note
PSA stock price today
Pros and cons of buying Public Storage stock
Pros
- Stable income: Public Storage is known for its consistent rental income from self-storage units, which translates into steady dividends for investors;
- Portfolio diversity: Investing in PSA can add real estate exposure to your investment portfolio without the hassle of owning physical properties;
- Liquidity: Public Storage shares are traded on major stock exchanges, providing liquidity and flexibility for investors;
- Tax benefits: REITs like Public Storage often come with tax advantages, such as reduced corporate taxes and high dividend payouts.
Cons
- Interest rate sensitivity: REITs are sensitive to interest rate changes. Rising interest rates can negatively impact share prices;
- Market volatility: While REITs are generally less volatile than some other stocks, they are not immune to market fluctuations;
- Management risk: The performance of Public Storage depends on the company’s management decisions, which may not always align with shareholders’ interests;
- Limited growth potential: The growth potential of Public Storage may be slower compared to tech or high-growth stocks.
Common mistakes of buying REITs
Investing in REITs, including Public Storage, can be rewarding, but it’s essential to steer clear of common mistakes and pitfalls:
- Neglecting due diligence: Don’t skip researching the REIT and its specific industry. Knowing the company’s fundamentals is crucial;
- Ignoring diversification: Avoid overloading your portfolio with a single REIT. Diversify across various sectors and asset classes to reduce risk;
- Focusing solely on dividends: While dividends are attractive, don’t disregard the overall performance and growth potential of the REIT;
- Timing the market: Trying to time the market can be challenging. Instead, focus on your long-term investment goals.
Note
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Public Storage stock
Is Public Storage a good investment?
Public Storage can be a good investment, especially for income-oriented investors looking for stable dividends. However, whether it’s a good investment for you depends on your financial goals and risk tolerance.
Can I buy Public Storage stock directly from the company?
No, you typically can’t buy Public Storage stock directly from the company. You’ll need to open an account with a brokerage like eToro to purchase PSA shares.
Are there tax advantages to investing in REITs like Public Storage?
Yes, REITs often come with tax benefits. They are required to distribute at least 90% of their taxable income as dividends to shareholders, which can result in reduced corporate taxes and higher dividend payouts.
How often does Public Storage pay dividends?
Public Storage usually pays dividends every quarter. The exact payment schedule may vary, so it’s essential to check the company’s dividend history for specific dates.
What is the minimum investment to buy Public Storage stock?
The minimum investment amount can vary depending on the brokerage you choose. Some brokers have no minimum investment requirement, while others may require a certain initial deposit to open an account.
