1 Magnificent S&P 500 Dividend Stock Down 30%: 4 Reasons to Buy Public Storage in 2025 and Hold Forever

Company Overview - Public Storage is the largest self-storage provider in the United States, with half of the U S population living within a trade area of one of its facilities [4] - The company has grown its storage space by 36% since 2019 through $11 7 billion in investments [7] - Public Storage generates 75% of its new customers through its digital eRental program, significantly higher than the 30% average of its REIT peers [9] Financial Performance - Public Storage's sales have grown by 12% over the last two years [2] - The company has a higher-than-average 4 1% dividend yield, which is about 20% above its 10-year average [14][15] - Public Storage's dividend payments have grown more than sixfold over the last two decades, representing a 10% annualized growth rate [14] Market Position and Growth Potential - Public Storage holds a 9% market share in the fragmented U S self-storage market, with 80% of the market consisting of smaller regional and local owners [11][12] - The company is well-positioned to continue consolidating the industry through mergers and acquisitions, supported by its best-in-class credit ratings [12] - Public Storage's high cash return on invested capital (ROIC) indicates its ability to generate substantial cash flows from new investments [10][12] Operational Strengths - Public Storage holds the highest Moody's and S&P Global credit ratings among U S REITs, providing a solid foundation for growth [6] - The company has implemented a digital operating model, with over 2 million customers using its mobile app, offering digital access, a digital care team, live help, and kiosks at each location [8] - Public Storage's digital prowess gives it an advantage in acquiring new customers, particularly among younger, tech-savvy generations [9] Valuation and Investment Appeal - Public Storage's stock has dropped roughly 30% from its highs, leading to a discounted valuation [1][16] - The company trades at 17 times cash from operations (CFO), near a decade-long low, making it an attractive investment despite its industry-leading qualities and growth prospects [16][17] - The combination of a 4 1% dividend yield, expansion potential, and best-in-class operations makes Public Storage a compelling S&P 500 dividend stock to buy in 2025 and hold long-term [17]