5 Best Dividend Growth Stocks to Buy in August

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

Dividend Yield as of August 7: 3.04%
Years of Consistent Dividend Growth: 12

Extra Space Storage Inc. (NYSE:EXR) is a Utah-based real estate investment trust company that mainly invests in self-storage units. The stock has delivered sound returns to shareholders since its IPO in 2004, gaining 1,477%. It gained 158.4% in the last five years, as of the close of August 6.

In FY21, Extra Space Storage Inc. (NYSE:EXR) reported an operating cash flow of $952.4 million, compared with $771.2 million in FY20. The company’s free cash flow stood at $948.7 million, up from $764 million in the previous quarter. It announced its Q2 results on August 2, ending the quarter with $58.7 million available in cash and cash equivalents, with total assets worth over $11 billion.

In February 2022, Extra Space Storage Inc. (NYSE:EXR) hiked its quarterly dividend by 20% to $1.50 per share. This was the company’s 12th consecutive year of dividend growth. It has a 5-year dividend CAGR of 8.7% and a payout ratio of 73%. As of August 7, the stock’s dividend yield was recorded to be at 3.04%.

In June, JPMorgan upgraded Extra Space Storage Inc. (NYSE:EXR) to Overweight, with a $193 price target. The firm believed that the company is expected to generate above-average net operating income growth for the REIT sector.

As per Insider Monkey’s Q1 2022 database, 29 hedge funds owned $327.6 million worth of stakes in Extra Space Storage Inc. (NYSE:EXR). In the previous quarter, 27 hedge funds held positions in the company, with stakes valued at over $252.4 million.