StorageVault Canada (TSX:SVI) reported its second-quarter earnings last week and while doing so, it also announced that it would be increasing its payout. The storage company is coming off a strong quarter where same-store revenue rose by 4.6% and profits also increased by 4.1%.

With its improving financials, StorageVault raised its payout as well, albeit modestly. Starting in the third quarter, the company will be paying a quarterly dividend of $0.002859, which is a 0.5% increase from the previous payment. The stock is paying a higher dividend but the yield remains modest at 0.23%, which isn’t a huge payout for investors. Investing $10,000 into the stock would produce an annual dividend of just $23 at that rate. This isn’t a great option for investors who crave a dividend as there are better-paying stocks out there.

This year, the stock has fallen close to 20% in value as investors have become worried about the company’s debt exposure. With $1.7 billion in debt, StorageVault does face considerable exposure to rising interest rates. And the main reason for the company’s profit this past quarter was due to a $15.6 million gain on a real estate sale.

Over the past five years, StorageVault’s stock has nearly doubled in value, but most of those gains have come as the company benefited from falling interest rates. Now, amid more challenging economic conditions, investors are scaling back their expectations for the business. Although the company raised its dividend, it’s still a modest yield. Plus, with economic conditions still uncertain, investors may want to wait and see how the business performs in future quarters before taking a chance on the stock, despite its falling valuation.