Generating cash flow from the stock market is underrated, in my opinion. While asset growth is important, we all have bills to pay. By having investments in dividend-paying shares, I can use the income from my portfolio to fund my lifestyle.
That’s a good goal for me to keep in mind. Safestore is my favourite UK REIT I’m a big fan of ( ), which is a real estate investment trust (REIT) that leases storage space in Paris and the UK. I particularly like it because of its positive long-term share price performance, which is rare for REITs.
It also has a healthy of 3.5%, which it pays biannually, providing that desirable cash flow I’m after. Also, the share price is currently down nearly 40% from its all-time high.
This means the market is potentially the stock, meaning my future returns could be greater. Furthermore, storage rental companies are resilient in the face of recessions, as customers often still demand storage units during periods of downsizing and tenant default. This adds an element of security, which I like.
Here’s why I’m bullish on Safestore Analysts view the shares positively, with their average 12-month price target being £9.50, indicating 10% potential for growth from the present price of £8.60.
This is based on five ‘buy’ ratings, two ‘outperform’ ratings, six ‘hold’ ratings, and no ‘sell’ ratings. Also, the company has had no dividend reductions since 2007. If I had bought the shares five years ago, my dividend yield from the inves.