W. P. Carey: Dividend Gets Whacked

Sep. 21, 2023 11:49 AM ETW. P. Carey Inc. (WPC) Stock488 Comments

Summary

  • W. P. Carey Inc. plans to reposition its portfolio by spinning off some office properties and selling others.
  • The company believes that getting rid of office properties will improve its organic growth and attract higher valuations from investors.
  • The strategic repositioning includes a "dividend reset" that will lower the dividend payout, but the dividend yield will still be attractive.
  • Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More »

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Article Thesis

W. P. Carey Inc. (NYSE:WPC) is a high-quality real estate investment trust, or REIT, with a positive track record. The company has become a Dividend Aristocrat over the last year, but that status will be pretty short-lived: The

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This article was written by

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Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally.

He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of WPC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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