Closing Position in Extra Space Storage
On April 28th I sent out a Buy recommendation on Extra Space Storage (NYSE:EXR). The purpose of the trade was to get a quick profit from my forecast of a large dividend increase. The dividend increase expectation was on target, with the new rate up 25% from what investors had earned during the previous four quarters.
Unfortunately, REITs as a sector swooned from mid-May until the end of June, and EXR did not show much of a share price pop on the news of the very nice dividend increase. The share price has recovered over the last two weeks, and I am closing out the EXR recommendation with profits calculated on today’s closing price.
The result will be about a 6% gain in 84 days, or 27% annualized. Note: Extra Space Storage is a great longer term dividend growth company. It will be next April before we again look for a dividend increase, but this stock is a keeper in a long-term income focused portfolio.
Recommendation: Sell EXR to close the previously opened position.