Last Tuesday, my friend and I spent 14 hours loading everything I own into the smallest shipping container I’ve ever seen.

That really is everything I own, plus my motorcycle and Miata. Although the whole experience was an excellent example of teamwork, I think I’m going to splurge on full-service movers next time.

The last time that I moved out of state was in 2015 when I made my way from Maryland to Florida. That time, I loaded everything into a trailer. My dad and brother hooked it to a pickup and drove it all the way through. Back then, I didn’t know about using a portable storage container to move, even though PODS had been around for nearly two decades.

PODS is the pioneer and industry leader in the portable container moving and storage business. Many other companies have joined the industry since PODS debuted in 1998. After checking availability and comparing prices of numerous companies, I went with U-Pack, which is owned by freight logistics company ArcBest (ARCB).

Unlike PODS, which isn’t a publicly traded company, ARCB is and pays a dividend. The quarterly 12 cents payment is a yield of only 0.67%. This doesn’t come close to meeting my minimum yield of 3.5%, and I would want even more from a trucking logistics company.

However, the whole packing and moving experience got me thinking about one of my favorite dividend-generating industries.

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Decades of Dividends

I’ve been recommending storage unit stocks for the entirety of my career.

The global self-storage market was worth almost $60 billion in 2024 and could reach $89 million by 2033. North America makes up the largest share of that market. And even still, the US has another 61 million square feet of self-storage under development.

The industry is cyclical based on seasonal trends and economics conditions, but there is always an underlying demand for storage. These cycles hand the major operators a nice tidy boost in profits.

For example, the growth trend in self-storage during the pandemic accelerated as living situations rapidly changed. The rise of remote work allowed people to relocate and adapt their housing needs accordingly. Some folks took the plunge into the RV lifestyle and stashed their belongings in storage as they hit the road.

Workers returning to the office and a cooling housing market will spur even more people to move.

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Returning to my story, there are always people relocating, inheriting things, and just plain buying too much stuff. And companies like Public Storage (PSA) and CubeSmart (CUBE) will continue to profit. Lucky for us, both companies have a long history of paying dividends and currently yield 4.1% and 5%, respectively.

Who Doesn’t Love VIP Status

I recommend holding the Public Storage preferred shares instead of the common shares. If you’re not familiar with preferred shares, check out this past issue of Dividend Digest.

In a nutshell, preferred shares have several advantages:

• They put you in the obligation line ahead of common share owners.

• Their dividends are set and cannot be changed at the whim of the Board of Directors.

• The shares have a set face value—called par value—which makes them less prone to big price swings.

Preferreds give you more stability but the set value limits your upside. That’s the tradeoff. Think of them as a pure income play. If you get lucky and grab shares at a discount to par you might be set for a bonus capital gain. That can happen, especially when a company is going through a transformational period.

Public Storage always has several preferred share offerings available. There are currently 14 different series of preferreds with yields ranging from 3.875% to 5.6%. Keep in mind that the yield stated in the preferred series name is based on a $25 par value. Your actual yield will depend on your entry price. The further below par you buy shares, the higher your yield.

You’ll collect those preferred dividends until Public Storage redeems the offering. Early redemptions usually happen only when a company thinks it can issue more preferred shares at a lower yield. I don’t expect that will happen anytime soon. I believe we’re at least a few years away from a mass redemption from PSA. In the meantime, we’ll bank our stream of income.

Although I could probably get rid of even more of my stuff, I know my minimalist mindset is not the norm. Even if you don’t have too much stuff, storage facilities are great places to park boats, RVs, and motorcycles. There will always be a demand… and dividends to collect.

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For more income, now and in the future,

Kelly Green

• ArcBest ARCB
• CubeSmart CUBE
• high-yield preferred shares
• Public Storage PSA
• storage companies

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