Why Is CubeSmart (CUBE) Among the Best REIT Dividend Stocks to Buy for 2024?

CubeSmart (NYSE: CUBE), a self-managed and self-administered real estate investment trust (REIT), has been making waves in the market with its consistent dividend growth and strong financial performance. As investors seek reliable income streams, CubeSmart's attractive dividend yield and track record make it an appealing choice for 2024. This article explores the reasons why CubeSmart is among the best REIT dividend stocks to consider for the coming year.



CubeSmart's dividend payout ratio, which is the percentage of earnings paid out as dividends, is a crucial factor in evaluating its dividend sustainability and growth potential. As of 2024, CubeSmart has a payout ratio of approximately 4.39%, which is relatively low compared to the average REIT payout ratio of around 6%. This lower payout ratio indicates that CubeSmart is retaining a significant portion of its earnings, allowing for reinvestment in the business and potential future dividend growth. Additionally, CubeSmart's consistent dividend growth over the past 15 years, coupled with its strong financial performance, suggests that the company is well-positioned to continue paying and increasing dividends in the coming years.



CubeSmart's acquisitions and expansion plans play a significant role in driving its dividend growth and overall performance. In 2024, the company is under contract to acquire two self-storage facilities, one in Oregon and one in Pennsylvania, for a total purchase price of around $22.0 million. These acquisitions are expected to close in the fourth quarter of 2024, further expanding CubeSmart's portfolio and revenue streams. Additionally, CubeSmart has added 24 stores to its third-party management platform, bringing the total number of third-party managed stores to 893. The company also has agreements with developers for the construction of self-storage properties in locations with high barriers to entry. As of September 30, 2024, CubeSmart had two joint venture development properties under construction, with a total investment of $36.9 million. These expansion efforts contribute to CubeSmart's consistent dividend growth, with a 15-year track record of increases, and a current yield of 4.39%.

In conclusion, CubeSmart's attractive dividend yield, low payout ratio, and consistent dividend growth, coupled with its strategic acquisitions and expansion plans, make it an appealing choice for investors seeking reliable income streams in 2024. As the company continues to grow its portfolio and revenue streams, investors can expect CubeSmart to maintain its position as one of the best REIT dividend stocks to buy for the coming year.