2 Dividend Stocks I'm Watching but Won't Buy Yet

Extra Space Storage (NYSE:EXR) and VEREIT (NYSE:VER) are two of the most attractive dividend stocks, but like an ill-fitting suit, something about these companies feels a little off. However, with some minor alterations, they could be a perfect fit and are well worth keeping an eye on.

Extra Space Storage - Most Americans have more stuff than they know what to do with, and the runaway success of the self-storage industry is proof. That's why I like this segment of the real estate investment trust, or REIT, universe. VEREIT - On the other side of that coin is VEREIT, which is currently trading at a much cheaper valuation of 10 times FFO. Formerly American Realty Capital Properties, the $7.3 billion company owns a portfolio 4,645 single-tenant retail properties spread across 49 states, Washington, D.C., Puerto Rico, and Canada. And although bricks-and-mortar retail isn't a booming industry, VEREIT's simple business model has proved wildly successful for peer companies National Retail Properties and Realty Income, which have each increased their dividend for more than 20 consecutive years.

Source: Motley Fool

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