CubeSmart Just Raised Its Dividend. Should You Buy CUBE Stock Here?
CubeSmart, a major US self-storage operator, has faced a tough year. Its stock has dropped 17% over the past 12 months and another 16% since January. Despite this, the company recently raised its dividend for the 16th year in a row.
The company’s latest quarterly results showed further strain. In Q3 2025, earnings per share fell to $0.36, down from $0.44 in the same period last year. Same-store net operating income also slipped by 1.5%, as revenues dipped 1% while operating costs edged higher.
Analysts remain divided on CubeSmart’s prospects. Truist Securities lowered its price target to $42 but kept a 'Buy' rating. Meanwhile, RBC Capital’s Brad Heffern called the stock the firm’s 'top idea for 2026' and set a $46 target. KeyBanc, however, downgraded the company to 'Sector Weight', pointing to weak growth and broader industry challenges.
The stock currently offers a 5.70% dividend yield, well above the sector median. Yet its payout ratio sits at 80.8%, reflecting high distribution requirements. The average analyst target of $43.38 suggests a potential 20.7% upside from today’s levels.
CubeSmart now trades at a steep discount compared to last year’s prices. The latest dividend increase marks its 16th straight annual rise, though earnings pressure persists. With mixed analyst views, investors will watch closely for signs of a turnaround in the self-storage market.
