Leading real estate investment trust CubeSmart is among the best dividend stocks to watch. In addition to being one of the top dividend plays and REIT stocks, CubeSmart has also earned a spot on the IBD Breakout Stocks Index.
With a 94 Composite Rating, CubeSmart joins Rexford Industrial Realty, Extra Space Storage, Public Storage, Life Storage, and American Tower among the top-rated REIT stocks. The industry ranks No. 53 out of the 197 groups IBD tracks.
On April 5, the IBD Screen Of The Day highlighted Rexford and other stocks showing rising profit estimates.
In a sign of demand for REITs and dividend stocks, CubeSmart, Rexford, Public Storage, and Extra Space Storage all made the latest list of new buys by the best mutual funds.
See All Stocks On The IBD Breakout Stocks Index
CubeSmart No. 1 Among Dividend Stocks In REIT Group
Headquartered in Pennsylvania, CubeSmart focuses on the ownership, operation, acquisition, and development of self-storage facilities in the U.S.
On Feb. 24.CubeSmart reported funds from operations, or FFO, for Q4 and 2021. (REITs use FFO rather than EPS to report profits.)
Once again, the company reported solid and steady growth in Q4. FFO has ranged from 22% to 27% over the last three quarters, while revenue has ranged from 22% to 24%. Over the last three years, CubeSmart has posted average FFO growth of 8%, while annual sales growth has averaged 10% over the same period.
CubeSmart tops its fellow dividend stocks in the REIT group. It currently yielding 3.2% on an annualized basis, beating Extra Space Storage (2.8%), Life Storage (2.7%), American Tower (2.1%), Public Storage (2.0%) and Rexford (1.6%).
CUBE Stock Eyes Breakout After Resetting Base Count
In what could lead to a renewed climb, CubeSmart recently reset its base count by undercutting the low in its prior chart pattern. That makes CUBE stock's current cup with handle a first-stage base. The buy point is 54.16.
The relative strength line has been rising nicely, putting it right around a new 52-week high. CubeSmart already trades above its 50-day moving average, but that line remains below the longer-term 200-day benchmark. Look for the 50-day to get back above the 200-day to show renewed technical strength.
Fellow REIT stocks Life Storage and Rexford are also setting up potential new buy points. Meanwhile, Extra Space storage is testing a new buy zone and Public Storage is extended from an earlier breakout.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to essentially invest in the entire index in addition to or rather than buying the individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
