Before You Buy Realty Income: Here's a REIT Stock I'd Buy First
I own both Realty Income (NYSE: O) and W.P. Carey (NYSE: WPC), so I see value in both of these real estate investment trusts (REITs). In fact, Realty Income is quite attractive to many income investors, given its conservative business model and reliable, growing dividend payment.
But if I were building a portfolio from scratch, I would definitely put W.P. Carey on my buy list ahead of Realty Income. The reason boils down to both the similarities between these two REITs and the differences, most importantly the way these companies have chosen to craft their respective portfolios. Here's what I mean.
REITs are income vehicles, so one of the first things you need to check out is dividends. For me, a history of dividend increases is a key measure of corporate success. Realty Income stands tall on this measure, with 27 years of annual dividend hikes under its belt. That's a pretty impressive record, with W.P. Carey "only" coming in at around 24 years. But, that 24-year streak dates back to W.P. Carey's initial public offering, which means it has hiked in each full year of its public life. It stands toe to toe with Realty Income as far as I'm concerned.
Source Fool.com
