5 Best Dividend Stocks For Rising Interest Rates

2. Extra Space Storage Inc. (NYSE:EXR)

Dividend Yield as of January 19: 3.99%

Extra Space Storage Inc. (NYSE:EXR) is a Utah-based real estate investment trust company that invests in self-storage facilities. The company offers a per-share dividend of $1.50 every quarter and has a dividend yield of 3.99%, as of January 19. It has been raising its dividends consistently for the past 12 years. The company is among the best dividend stocks for rising interest rates as demand for self-storage space has increased after the pandemic.

In January, Raymond James upgraded Extra Space Storage Inc. (NYSE:EXR) to Outperform with a $170 price target. The firm noted the company’s occupancy over rate strategy during this uncertain economic condition.

As of the end of September 2022, 27 hedge funds tracked by Insider Monkey reported owning stakes in Extra Space Storage Inc. (NYSE:EXR), the same as in the previous quarter. The collective value of these stakes is roughly $148 million.

Baron Funds mentioned Extra Space Storage Inc. (NYSE:EXR) in its Q2 2022 investor letter. Here is what the firm has to say:

“Following a sharp correction in its share price during the second quarter, we acquired shares in Extra Space Storage Inc. This REIT has assembled the second-largest self-storage portfolio in the country and has the largest portfolio of third-party managed self-storage facilities. In our opinion, Extra Space’s management team is excellent. Over the last decade, management has delivered strong occupancy gains, rent growth, and expense control that has led to a cost of capital advantage relative to its peers. Management has capitalized on its cost of capital advantage by tripling its owned self-storage count since 2010. We believe the long-term growth opportunity for the company remains strong.”